CALIFORNIA TAX CREDIT ALLOCATION COMMITTEE 2018 COMPETITIVE 9% APPLICATION FOR LOW-INCOME HOUSING TAX CREDITS January 29, 2018 Version II. APPLICATION - SECTION 1: APPLICANT STATEMENT, CERTIFICATION AND NOTARY

APPLICANT: Wakeland Grove, L.P.

PROJECT NAME: The Grove

PLEASE INCLUDE APPLICATION FEE WITH APPLICATION SUBMISSION (CHECK ONLY)

The undersigned applicant hereby makes application to the California Tax Credit Allocation Committee (“TCAC”) for a reservation of Federal, or Federal and State Low-Income Housing Tax Credits (“Credits”) in the amount(s) of:

$1,609,094 annual Federal Credits, and

total State Credits

for the purpose of providing low-income rental housing as herein described. I understand that Credit amount(s) preliminarily reserved for this project, if any, may be adjusted over time based upon changing project costs and financial feasibility analyses which TCAC is required to perform on at least three occasions.

Election to sell ("certificate') state credits: No By selecting "Yes" or "No" in the box immediately before, I hereby make an irrevocable election to sell ("certificate") or not sell all or any portion of the state credit, as allowed pursuant to Revenue and Taxation Code Sections 12206(o), 17058(q), and 23610.5(r). I further certify that the applicant is a non-profit entity, and that the state credit pricing will be at least 80 cents per dollar.

I agree it is my responsibility to provide TCAC with the original complete application and the Local Reviewing Agency an exact copy of the application. I agree that I have included a letter from the local government and the appropriate Local Reviewing Agency of the jurisdiction in which the project is located identifying the agency designated as the Local Reviewing Agency for the Tax Credit Allocation Committee. I agree that it is also my responsibility to provide such other information as TCAC requests as necessary to evaluate my application. I represent that if a reservation or allocation of Credit is made as a result of this application, I will also furnish promptly such other supporting information and documents as may be requested. I understand that TCAC may verify information provided and analyze materials submitted as well as conduct its own investigation to evaluate the application. I recognize that I have an affirmative duty to inform TCAC when any information in the application or supplemental materials is no longer true and to supply TCAC with the latest and accurate information.

I acknowledge that if I receive a reservation of Tax Credits, I will be required to submit requisite documentation at each of the following stages: for a carryover allocation; for readiness to proceed requirements if applicable; and after the project is placed-in-service.

I represent I have read Section 42 of the Internal Revenue Code (IRC) pertaining to Federal Tax Credits, and if applying for State Tax Credits, I represent I have also read California Health and Safety Code Sections 50199.4 et seq. and California Revenue and Taxation Code Sections 12206, 17058, and 23610.5 pertaining to the State Tax Credit program. I understand that the Federal and State Tax Credit programs are complex and involve long-term maintenance of housing for qualified low-income households. I acknowledge that TCAC has recommended that I seek advice from my own tax attorney or tax advisor.

I represent that I have read and understand the requirements set forth in Regulation Section 10322(j) pertaining to re-applications for Credit.

January 29, 2018 Version 1 Application 3/1/2018 I certify that I have read and understand the provisions of Sections 10322(a) through (h). No additional documents in support of the basic thresholds or point selection categories shall be accepted from the applicant beyond the application filing deadline, unless the Executive Director, at his or her sole discretion, determines that the deficiency is a clear reproduction or application assembly error, or an obviously transposed number. In such cases, applicants shall be given up to five (5) business days from the date of receipt of staff notification, to submit said documents to complete the application. For threshold omissions other than reproduction or assembly errors, the Executive Director may request additional clarifying information from other government entities.

I agree to hold TCAC, its members, officers, agents, and employees harmless from any matters arising out of or related to the Credit programs.

I agree that TCAC will determine the Credit amount to comply with requirements of IRC Section 42 but that TCAC in no way warrants the feasibility or viability of the project to anyone for any purpose. I acknowledge that TCAC makes no representation regarding the effect of any tax Credit which may be allocated and makes no representation regarding the ability to claim any Credit which may be allocated.

I acknowledge that all materials and requirements are subject to change by enactment of federal or state legislation or promulgation of regulations.

In carrying out the development and operation of the project, I agree to comply with all applicable federal and state laws regarding unlawful discrimination and will abide by all Credit program requirements, rules, and regulations.

I acknowledge that neither the Federal nor the State Tax Credit programs are entitlement programs and that my application will be evaluated based on the Credit statutes, regulations, and the Qualified Allocation Plan adopted by TCAC which identify the priorities and other standards which will be employed to evaluate applications.

I acknowledge that a reservation of Federal or State Tax Credits does not guarantee that the project will qualify for Tax Credits. Both Federal law and the state law require that various requirements be met on an ongoing basis. I agree that compliance with these requirements is the responsibility of the applicant.

I acknowledge that the information submitted to TCAC in this application or supplemental thereto may be subject to the Public Records Act or other disclosure. I understand that TCAC may make such information public.

I acknowledge that if I obtain an allocation of Federal and/or State Tax Credits, I will be required to enter into a regulatory agreement which will contain, among other things, all the conditions under which the Credits were provided including the selection criteria delineated in this application.

I declare under penalty of perjury that the information contained in the application, exhibits, attachments, and any further or supplemental documentation is true and correct to the best of my knowledge and belief. I certify and guarantee that each item identified in TCAC’s minimum construction standards will be incorporated into the design of the project, unless a waiver has been approved by TCAC. I certify that, when requesting a threshold basis increase for development impact fees, the impact fee amounts are accurate as of the application date. In an application proposing rehabilitation work, I certify that all necessary work identified in the Capital Needs Assessment, including the immediate needs listed in the report, will be performed (unless a waiver is granted) prior to the project's rehabilitation completion. I certify and guarantee that the application meets each item of the applicable housing type requirement, as identified by TCAC regulation. I certify and guarantee that any tenant services proposed under TCAC Regulation Section 10325(c)(5)(B) will be available within 6 months of the project's placed in service date, will be of a regular and ongoing nature and provided to tenants for a period of at least 15 years, free of charge (except child care). I understand that any misrepresentation may result in cancellation of Tax Credit reservation, notification of the Internal Revenue Service and the Franchise Tax Board, and any other actions which TCAC is authorized to take pursuant to California Health and Safety Code Section 50199.22, issuance of fines pursuant to California Health and Safety Code Section 50199.10, and negative points per Regulation Section 10325(c)(3) or under general authority of state law.

I certify that I believe that the project can be completed within the development budget and the development timetable set forth (which timetable is in conformance with TCAC rules and regulations) and can be operated in the manner proposed within the operating budget set forth.

I further certify that more than 10% of the project's total reasonably expected basis cost will be incurred and the land acquired by the date specified in the reservation preliminary or final letter.

January 29, 2018 Version 2 Application 3/1/2018 Dated this day of , 2017 at By: (Original Signature) , California. Kenneth L. Sauder (Typed or printed name)

President & CEO (Title)

ACKNOWLEDGMENT

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF )

COUNTY OF )

On before me, , personally appeared

, who proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)

January 29, 2018 Version 3 Application 3/1/2018 Local Jurisdiction: City of Vista City Manager: Patrick Johnson * Title: City Manager Mailing Address: 200 Civic Center Drive, 3rd Floor City: Vista Zip Code: 92084 Phone Number: 760 643 5200 Ext. FAX Number: 760 639 6132 E-mail: [email protected]

* For City Manager, please refer to the following the website below: http://www.treasurer.ca.gov/ctcac/2018/lra/contact.pdf

January 29, 2018 Version 4 Application 3/1/2018 II. APPLICATION - SECTION 2: GENERAL AND SUMMARY INFORMATION

A. Application Type Application type: Preliminary Reservation Prior application was submitted but not selected? Yes If yes, enter application number: TCAC # CA - 17 - 114

Has credit previously been awarded? No If re-applying and returning credit, enter the current application number and the amount being returned: TCAC # CA - - Returned Federal Credit: Is this project a Re-syndication of a current TCAC project? No If a Resyndication Project, complete the Resyndication Projects section below.

Is State Farmworker Credit requested? No

B. Project Information Project Name: The Grove Site Address: 815 Civic Center Drive If address is not established, enter detailed description (i.e. NW corner of 26th and Elm)

City: Vista County: San Diego Zip Code: 92084-6154 Census Tract: 0195.03 Assessor's Parcel Number(s):

Project is located in a DDA: No Project is located in a Qualified Census Tract: Yes *Federal Congressional District: 49 Project is DDA/QCT but requesting State Credits: No *State Assembly District: 76 Special Needs with 130% basis & State Credits: No *State Senate District: 36 Project is a Scattered Site Project: No If yes, all sites within a 5-mile diameter range: N/A *Accurate information is essential; the following website is provided for reference: https://www.govtrack.us/congress/members/map http://findyourrep.legislature.ca.gov/

C. Credit Amount Requested (If State Credit Request, Reg. Sects. 10317 & 10322(h)(33)) Federal Only $1,609,094 (federal) (state) *Applicants that selected the option for State credit substitution can still elect to mark Federal only Credits.

D. Federal Minimum Set-Aside Election (IRC Section 42(g)(1)) 40%/60%

E. Set-Aside Selection (Reg. Section 10315(a)-(e)) N/A

F. Housing Type Selection (Reg. Sections 10315(h) & 10325(g)) Seniors If Special Needs housing type, list the percentage of Special Needs Units: If less than 75% special needs units, specify the standards the non-special needs units will meet: N/A

G. Geographic Area (Reg. Section 10315(h)) Please select your geographic area: San Diego County

January 29, 2018 Version 5 Application 3/1/2018 II. APPLICATION - SECTION 3: APPLICANT INFORMATION

A. Identify Applicant Applicant is the current owner and will retain ownership: Yes Applicant will be or is a general partner in the to be formed or formed final ownership entity: Yes Applicant is the project developer and will be part of the final ownership entity for the project: Yes Applicant is the project developer and will not be part of the final ownership entity for the project: N/A

B. Applicant Contact Information Applicant Name: Wakeland Grove, L.P. Street Address: 1230 Columbia Street, Suite 950 City: San Diego State: CA Zip Code: 92101 Contact Person: Kenneth L. Sauder Phone: 619 677 2320 Ext.: Fax: 619 235 5386 Email: [email protected] C. Legal Status of Applicant: Limited Partnership Parent Company: Wakeland Housing & Development C If Other, Specify:

D. General Partner(s) Information D(1) General Partner Name: Wakeland Grove LLC Administrative GP Street Address: 1230 Columbia Street, Suite 950 City: San Diego State: CA Zip Code: 92101 Contact Person: Kenneth L. Sauder Phone: 619 677 2320 Ext.: Fax: 619 235 5386 Email: ksauder@wakelandhdc,com Nonprofit/For Profit: Nonprofit Parent Company: Wakeland Housing & Development C

D(2) General Partner Name:* Wakeland Opportunites for Affordable Housing Managing GP Street Address: 1230 Columbia Street, Suite 950 City: San Diego State: CA Zip Code: 92101 Contact Person: Kenneth L. Sauder Phone: 619 677 2320 Ext.: Fax: 619 235 5386 Email: ksauder@wakelandhdc,com Nonprofit/For Profit: Nonprofit Parent Company: Wakeland Housing & Development C

D(3) General Partner Name: (select one) Street Address: City: State: Zip Code: Contact Person: Phone: Ext.: Fax: Email: Nonprofit/For Profit: (select one) Parent Company:

E. General Partner(s) or Principal Owner(s) Type Nonprofit *If Joint Venture, 2nd GP must be included if applicant is pursuing a property tax exemption F. Status of Ownership Entity Reg. Section 10327(g)(2) - "TBD" not sufficient currently exists If to be formed, enter date: *(Federal I.D. No. must be obtained prior to submitting carryover allocation package)

G. Contact Person During Application Process Company Name: Wakeland Housing & Development Corporation Street Address: 1230 Columbia Street, Suite 950 City: San Diego State: CA Zip Code: 92101 Contact Person: Jack D. Farris Phone: 619 677 2290 Ext.: Fax: 619 235 5386 Email: [email protected] Participatory Role: Senior Project Manager (e.g., General Partner, Consultant, etc.)

January 29, 2018 Version 6 Application 3/1/2018 II. APPLICATION - SECTION 4: DEVELOPMENT TEAM INFORMATION

A. Indicate and List All Development Team Members

Developer: Wakeland Housing & Development C Architect: Dahlin Group Address: 1230 Columbia Street, Suite 950 Address: 501 West Broadway, Suite 1080 City, State, Zip San Diego, CA 92101 City, State, Zip: San Diego CA 92101 Contact Person: Kenneth L. Sauder Contact Person: Sean Whitacre Phone: 619 677 2320 Ext.: Phone: 858 350 0589 Ext.: Fax: 619 535 5386 Fax: Email: [email protected] Email: [email protected]

Attorney: Downs Pham & Kuei LLp General Contractor: Sun Country Builders Address: One Embarcadero Cte, Ste 500 Address: 138 Civic Center Drive, Suite 204 City, State, Zip San Francisco, CA 94111 City, State, Zip: Vista, CA 92084 Contact Person: Gary Downs Contact Person: John Ahlswede Phone: 415 202 6379 Ext.: Phone: 760 630 8042 Ext.: 304 Fax: 415 477 6748 Fax: 760 630 3718 Email: [email protected] Email: [email protected]

Tax Professional: Energy Consultant: Brummitt Energy Associates Address: Address: 777 S. Hwy 101, Suite 203 City, State, Zip City, State, Zip: Solana Beach, CA 92075 Contact Person: Contact Person: Hans Marsman Phone: Ext.: Phone: 619 531 1126 Ext.: Fax: Fax: Email: Email: [email protected]

CPA: Novagradac & Company LLP Investor: T.B.D. Address: 111 SW 5th Ave., Suite 1100 Address: City, State, Zip Portland, OR 97204 City, State, Zip: Contact Person: Warren Sebra Contact Person: Phone: 503 821 2710 Ext.: Phone: Ext.: Fax: 503 535 2815 Fax: Email: [email protected] Email:

Consultant: California Housing Partnership Corpo Market Analyst: Laurin Associates Address: 4231 Balboa Avenue #1018 Address: 1501 Sports Drive City, State, Zip San Diego, CA 92117 City, State, Zip: Sacramento, CA 95834 Contact Person: Diep Do Contact Person: Stephanie Williams Phone: 858 737 4876 Ext.: Phone: 916 372 6100 Ext.: Fax: Fax: Email: [email protected] Email: [email protected]

Appraiser: Prop. Mgmt. Co.: ConAm Group Address: Address: 3990 Ruffin Rd., Suite 100 City, State, Zip City, State, Zip: San Diego, CA 92123 Contact Person: Contact Person: Michelle Sites Phone: Ext.: Phone: 858 614 7376 Ext.: Fax: Fax: 858 614 7576 Email: Email: [email protected]

CNA Consultant: 2nd Prop. Mgmt Co.: Address: Address: City, State, Zip City, State, Zip: Contact Person: Contact Person: Phone: Ext.: Phone: Ext.: Fax: Fax: Email: Email:

January 29, 2018 Version 7 Application 3/1/2018 II. APPLICATION - SECTION 5: PROJECT INFORMATION

A. Type of Credit Requested New Construction Yes If yes, will demolition of an existing structure be involved? Yes (may include Adaptive Reuse) If yes, will relocation of existing tenants be involved? Yes Rehabilitation-Only N/A Is this an Adaptive Reuse project? N/A Acquisition & Rehabilitation N/A If yes, please consult TCAC staff to determine the applicable regulatory requirements (new construction or rehabilitation).

B. Acquisition and Rehabilitation/Rehabilitation-only Projects If requesting Acquisition Credit, will the acquisition meet the 10-year placed in service rule as required by IRC Sec. 42(d)(2)(B)(ii)? N/A If no, will it meet the waiver conditions of IRC Sec. 42(d)(6)? N/A Will the rehabilitation and/or the income and rent restrictions of Sec. 42 cause relocation of existing tenants? N/A If yes, applicants must submit an explanation of relocation requirements, a detailed relocation plan including a budget with an identified funding source (see Checklist). Age of Existing Structures No. of Existing Buildings No. of Occupied Buildings No. of Existing Units No. of Stories Current Use:

Resyndication Projects Current/original TCAC ID: TCAC # CA - - TCAC # CA - - First year of credit: Are Transfer Event provisions applicable? See questionnaire on TCAC website. N/A Is the project currently under a Capital Needs Agreement with TCAC? N/A If so, has the Short Term Work been completed? N/A See Checklist, Tab 8 for documentation requirements. Is the project subject to hold harmless rent limits? N/A If yes, see page 18 and Checklist, Tab 8.

C. Purchase Information Name of Seller: NA - Owned by Wakeland HDC Signatory of Seller: Date of Purchase Contract or Option: Purchased from Affiliate: No Expiration Date of Option: If yes, broker fee amount to affiliate? Purchase Price: $3,693,187 Special Assessment(s): Phone: Ext.: Historical Property/Site: No Holding Costs per Month: Total Projected Holding Costs: Real Estate Tax Rate: 1.00% Purchase price over appraisal Amount of SOFT perm financing covering the excess purchase price over appraisal D. Project, Land, Building and Unit Information Project Type Single Room Occupancy: N/A Single Family Home: N/A Detached 2, 3, or 4 Family: N/A Housing Cooperative: N/A Tenant Homeownership: N/A One or Two Story Garden: N/A Townhouse/Row House: N/A Condominium: N/A Inner City Infill Site: Yes Two or More Story With an Elevator: Yes if yes, enter number of stories: 3 Two or More Story Without an Elevator: N/A if yes, enter number of stories: One or More Levels of Subterranean Parking: N/A Other: (specify here)

E. Land Density: x Feet or 2.01 Acres 87,556 Square Feet 40.30 If irregular, specify measurements in feet, acres, and square feet:

January 29, 2018 Version 8 Application 3/1/2018 F. Building Information Total Number of Buildings: 1 Residential Buildings: 1 Community Buildings: 1 Commercial/ Retail Space: N/A If Commercial/ Retail Space, explain: (include use, size, location, and purpose)

Are Buildings on a Contiguous Site? Yes If not Contiguous, do buildings meet the requirements of IRC Sec. 42(g)(7)? N/A

Do any buildings have 4 or fewer units? No If yes, are any of the units to be occupied by the owner or a person related to the owner (IRC Sec. 42(i)(3)(c))? N/A

G. Project Unit Number and Square Footage Total number of units: 81 Total number of non-Tax Credit Units (excluding managers' units) (i.e. market rate units): Total number of units (excluding managers’ units): 80 Total number of Low Income Units: 80 Ratio of Low Income Units to total units (excluding managers’ units): 100% Total square footage of all residential units (excluding managers’ units): 44,094 Total square footage of Low Income Units: 44,094 Ratio of low-income residential to total residential square footage (excluding managers’ units): 100% Applicable fraction, smaller of unit or square footage ratio (used on "Basis & Credits"): 100% Total community room square footage: 2,590 Total commercial/ retail space square footage: Total common space square footage (including managers’ units): 27,227 Total parking structure square footage (excludes car-ports and "tuck under" parking): *Total square footage of all project structures (excluding commercial/retail): 73,911 *equals: "total square footage of all residential units" + "total community room square footage" + "total common space" + "total parking structure square footage")

Total Project Cost per Unit $360,588 Total Residential Project Cost per Unit $360,588 Total Eligible Basis per Unit

H. Tenant Population Data Completion of this section is required. The information requested in this section is for national data collection purposes, and is not intended for threshold and competitive scoring use; however, the completed table should be consistent with information provided in the application and attachments.

Indicate the number of units anticipated for the following populations: Homeless/formerly homeless N/A Transitional housing N/A Persons with physical, mental, development disabilities N/A Persons with HIV/AIDS N/A Transition age youth N/A Farmworker N/A Family Reunification N/A Other: Seniors 80 Units w/ tenants of multiple disability type or subsidy layers (explain)

For 4% federal applications only: Rural area consistent with TCAC methodology N/A

January 29, 2018 Version 9 Application 3/1/2018 II. APPLICATION - SECTION 6: REQUIRED APPROVALS & DEVELOPMENT TIMETABLE

A. Required Approvals Necessary to Begin Construction

Approval Dates Application Estimated Actual Submittal Approval Approval Negative Declaration under CEQA 4/15/2016 5/8/2017 NEPA 4/3/2017 6/19/2017 Toxic Report N.A. Soils Report 5/2/2017 5/12/2017 Coastal Commission Approval N.A. Article 34 of State Constitution 5/10/2017 6/9/2017 Site Plan 4/15/2016 5/2/2017 Conditional Use Permit Approved or Required N.A. Variance Approved or Required N.A. Other Discretionary Reviews and Approvals N.A.

Project and Site Information Current Land Use Designation South Gateway District of the Downtown Specific Plan Area Current Zoning and Maximum Density MU-30 (Mixed Use) 30 units to the acre Proposed Zoning and Maximum Density with the approved 35% density bonus max density is 40.38 units/acre Does this site have Inclusionary Zoning? No Occupancy restrictions that run with the land due to CUP’s or density bonuses? No (if yes, explain here) Building Height Requirements Max 45 feet Required Parking Ratio Density bonus concession is 1 space per unit Is site in a Redevelopment Area? No

January 29, 2018 Version 10 Application 3/1/2018 B. Development Timetable

Actual or Scheduled Month / Year Environmental Review Completed 6 / 2017 SITE Site Acquired 4 / 2016 Conditional Use Permit N/A / Variance N/A / LOCAL PERMITS Site Plan Review 5 / 2017 Grading Permit 11 / 2018 Building Permit 11 / 2018 Loan Application 2 / 2018 CONSTRUCTION Enforceable Commitment 2 / 2018 FINANCING Closing and Disbursement 12 / 2018 Loan Application 2 / 2018 PERMANENT Enforceable Commitment 2 / 2018 FINANCING Closing and Disbursement 11 / 2020 Type and Source: City of Vista residual receipts loan N/A / Application 11 / 2017 Closing or Award 2 / 2018 Type and Source: County of San Diego residual receipts loan N/A / Application 6 / 2016 Closing or Award 6 / 2017 Type and Source: AHP N/A / Application 3 / 2017 Closing or Award 6 / 2017 Type and Source: (specify here) N/A / Application N/A / OTHER LOANS AND Closing or Award N/A / GRANTS Type and Source: (specify here) N/A / Application N/A / Closing or Award N/A / Type and Source: (specify here) N/A / Application N/A / Closing or Award N/A / 10% of Costs Incurred 3 / 2019 Construction Start 12 / 2018 Construction Completion 5 / 2020 Placed In Service 5 / 2020 Occupancy of All Tax Credit Units 10 / 2020

January 29, 2018 Version 11 Application 3/1/2018 III. PROJECT FINANCING - SECTION 1: CONSTRUCTION FINANCING

A. Construction Financing

List Below All Projected Sources Required To Complete Construction

Name of Lender/Source Term (months) Interest Rate Amount of Funds 1) Wells Fargo Bank Construction Loan 22 4.880% $17,093,274 2) County of San Diego Loan 22 3.000% $2,700,000 3) County accrued/deferred interest $88,492 4) City of Vista Loan 22 3.000% $5,700,000 5) City accrued/deferred interest $186,817 6) FHLB AHP 22 $800,000 7) Costs deferred until conversion $1,218,412 8) LP Net Equity $1,420,665 9) 10) 11) 12) Total Funds For Construction: $29,207,660

1) Lender/Source: Wells Fargo Bank Construction Loan 2) Lender/Source: County of San Diego Loan Street Address: 401 B Street, Suite 304 Street Address: 3989 Ruffin Road City: San Diego City: San Diego Contact Name: Paul Shipstead Contact Name: Felipe Murillo Phone Number: 619 699 3135 Ext.: Phone Number: 858 694 4807 Ext.: Type of Financing: Bank construction loan Type of Financing: residual receipts loan Is the Lender/Source Committed? Yes Is the Lender/Source Committed? Yes

3) Lender/Source: County accrued/deferred interest 4) Lender/Source: City of Vista Loan Street Address: 3989 Ruffin Road Street Address: 200 Civic Center Drive City: San Diego City: Vista Contact Name: Felipe Murillo Contact Name: Amanda Lee Phone Number: 858 694 4807 Ext.: Phone Number: 760 643 5207 Ext.: Type of Financing: residual receipts loan Type of Financing: residual receipts loan Is the Lender/Source Committed? Yes Is the Lender/Source Committed? Yes

5) Lender/Source: City accrued/deferred interest 6) Lender/Source: FHLB AHP Street Address: 200 Civic Center Drive Street Address: 600 California Street, 3rd Floor City: Vista City: San Francisco, CA 94108 Contact Name: Amanda Lee Contact Name: Kanffee Chan Phone Number: 760 643 5207 Ext.: Phone Number: 415 616 2270 Ext.: Type of Financing: residual receipts loan Type of Financing: deferred loan Is the Lender/Source Committed? Yes Is the Lender/Source Committed? Yes

7) Lender/Source: Costs deferred until conversion 8) Lender/Source: LP Net Equity Street Address: N/A Street Address: T.B.D. City: City: Contact Name: Contact Name: Phone Number: Ext.: Phone Number: Ext.: Type of Financing: Type of Financing: Is the Lender/Source Committed? Yes Is the Lender/Source Committed? No

9) Lender/Source: 10) Lender/Source: Street Address: Street Address: City: City: Contact Name: Contact Name: Phone Number: Ext.: Phone Number: Ext.: Type of Financing: Type of Financing: Is the Lender/Source Committed? No Is the Lender/Source Committed? No

January 29, 2018 Version 12 Application 3/1/2018 11) Lender/Source: 12) Lender/Source: Street Address: Street Address: City: City: Contact Name: Contact Name: Phone Number: Ext.: Phone Number: Ext.: Type of Financing: Type of Financing: Is the Lender/Source Committed? No Is the Lender/Source Committed? No

January 29, 2018 Version 13 Application 3/1/2018 III. PROJECT FINANCING - SECTION 2: PERMANENT FINANCING

A. Permanent Financing

List Below All Projected Sources Required To Complete Construction

Name of Lender/Source Term Interest Residual Receipts Annual Debt Amount of (months) Rate / Deferred Pymt. Service Funds

1) CCRC Permanent Loan Tranche A 420 6.350% $160,997 $2,259,100 2) CCRC Permanent Loan Tranche B 180 6.350% $207,775 $2,006,600 3) City of Vista Loan 840 3.000% Residual $5,700,000 4) City accrued/deferred interest Residual $186,817 5) County of San Diego Loan 660 3.000% Residual $2,700,000 6) County accrued/deferred interest Residual $88,492 7) FHLB AHP 660 $800,000 8) 9) 10) 11) 12) Total Permanent Financing: $13,741,009 Total Tax Credit Equity: $15,466,651 Total Sources of Project Funds: $29,207,660

1) Lender/Source: CCRC Permanent Loan Tranche A 2) Lender/Source: CCRC Permanent Loan Tranche B Street Address: 100 West Broadway #100 Street Address: 100 West Broadway #100 City: Glendale City: Glendale Contact Name: Mark R. Rasmussen Contact Name: Mark R. Rasmussen Phone Number: 818 550 9807 Ext.: Phone Number: 818 550 9807 Ext.: Type of Financing: Permanent loan Type of Financing: Section 8 Permanent loan Is the Lender/Source Committed? Yes Is the Lender/Source Committed? Yes

3) Lender/Source: City of Vista Loan 4) Lender/Source: City accrued/deferred interest Street Address: 200 Civic Center Drive Street Address: 200 Civic Center Drive City: Vista City: Vista Contact Name: Amanda Lee Contact Name: Amanda Lee Phone Number: 760 643 5207 Ext.: Phone Number: 760 643 5207 Ext.: Type of Financing: Residual Receipts Type of Financing: Residual Receipts Is the Lender/Source Committed? Yes Is the Lender/Source Committed? Yes

5) Lender/Source: County of San Diego Loan 6) Lender/Source: County accrued/deferred interest Street Address: 3989 Ruffin Road Street Address: 3989 Ruffin Road City: San Diego City: San Diego Contact Name: Felipe Murillo Contact Name: Felipe Murillo Phone Number: 858 694 4807 Ext.: Phone Number: 858 694 4807 Ext.: Type of Financing: Residual Receipts Type of Financing: Residual Receipts Is the Lender/Source Committed? Yes Is the Lender/Source Committed? Yes

7) Lender/Source: FHLB AHP 8) Lender/Source: Street Address: 600 California Street, 3rd Floor Street Address: City: San Francisco, CA 94108 City: Contact Name: Kanffee Chan Contact Name: Phone Number: 415 616 2270 Ext.: Phone Number: Ext.: Type of Financing: deferred loan Type of Financing: Is the Lender/Source Committed? Yes Is the Lender/Source Committed? No

January 29, 2018 Version 14 Application 3/1/2018 9) Lender/Source: 10) Lender/Source: Street Address: Street Address: City: City: Contact Name: Contact Name: Phone Number: Ext.: Phone Number: Ext.: Type of Financing: Type of Financing: Is the Lender/Source Committed? No Is the Lender/Source Committed? No

11) Lender/Source: 12) Lender/Source: Street Address: Street Address: City: City: Contact Name: Contact Name: Phone Number: Ext.: Phone Number: Ext.: Type of Financing: Type of Financing: Is the Lender/Source Committed? No Is the Lender/Source Committed? No

January 29, 2018 Version 15 Application 3/1/2018 III. PROJECT FINANCING - SECTION 3: INCOME INFORMATION

A. Low Income Units

(a) (b) (c) (d) (e) (f) (g) (h) Proposed Total Monthly Monthly Rent % of Targeted % of Bedroom Number of Monthly Rent Rents Monthly Plus Utilities Area Median Actual Type(s) Units (Less Utilities) (b x c) Utility (c + e) Income AMI 1 Bedroom 20 $441 $8,820 $35 $476 30% 27.9% 2 Bedrooms 4 $490 $1,960 $45 $535 30% 26.1% 1 Bedroom 7 $732 $5,124 $35 $767 45% 45.0% 2 Bedrooms 1 $876 $876 $45 $921 45% 45.0% 1 Bedroom 23 $758 $17,434 $35 $793 50% 46.5% 2 Bedrooms 5 $847 $4,235 $45 $892 50% 43.6% 1 Bedroom 16 $901 $14,416 $35 $936 60% 54.9% 2 Bedrooms 4 $1,007 $4,028 $45 $1,052 60% 51.4%

Total # Units: 80 Total: $56,893 Average: 46.0%

Is this a resyndication project using hold harmless rent limits in the above table? N/A Hold harmless rents cannot exceed the federal set-aside current tax credit rent limits. Must use current rent limits for units included in the lowest income point category.

B. Manager Units Projects with 16 or more Low-Income and Market-Rate Units must have one on-site manager's unit. Projects with at least 161 Low-Income and Market-Rate Units must provide a second on-site manager's unit, and one additional on-site manager's unit for each 80 Low-Income and Market-Rate Units beyond 161 units, up to a maximum of four on-site manager's units. Scattered site projects of 16 or more Low-Income and Market-Rate Units must have at least one manager's unit for the entire project, and at one manager's unit at each site consisting of 16 or more Low-Income and Market-Rate Units. Projects may employ full-time property management staff and provide an equivalent number of desk or security staff for the hours when the property management staff are not working.

(a) (b) (c) (d) Proposed Total Monthly Bedroom Number of Monthly Rent Rents Type(s) Units (Less Utilities) (b x c) 2 Bedrooms 1

Total # Units: 1 Total:

No Project with desk or security staff in lieu of on-site manager unit(s) See TCAC Regulation Section 10325(f)(7)(J) for complete requirements.

January 29, 2018 Version 16 Application 3/1/2018 C. Market Rate Units

(a) (b) (c) (d) Proposed Total Monthly Bedroom Number of Monthly Rent Rents Type(s) Units (Less Utilities) (b x c)

Total # Units: Total:

Aggregate Monthly Rents For All Units: $56,893 Aggregate Annual Rents For All Units: $682,716

D. Rental Subsidy Income/Operating Subsidy Complete spreadsheet "Subsidy Contract Calculation"

Number of Units Receiving Assistance: 24 Length of Contract (years): 15 Expiration Date of Contract: 7/1/2034 Total Projected Annual Rental Subsidy: $251,520

E. Miscellaneous Income

Annual Income from Laundry Facilities: $4,860 Annual Income from Vending Machines: Annual Interest Income: Other Annual Income: (specify here) Total Miscellaneous Income: $4,860 Total Annual Potential Gross Income: $939,096

F. Monthly Resident Utility Allowance by Unit Size (utility allowances must be itemized and must agree with the applicable utility allowance schedule)

SRO / STUDIO 1 BR 2 BR 3 BR 4 BR ( ) BR Space Heating: $7 $9 Water Heating: Cooking: $4 $5 Lighting: Electricity: $23 $30 Water:* Other: air conditioning $1 $1 Total: $35 $45 *PROJECTS PROPOSING UNITS WITH INDIVIDUAL WATER METERS MUST INCLUDE A WATER ALLOWANCE.

Name of PHA or California Energy Commission Providing Utility Allowances: County of San Diego Housing Authority See Regulation Section 10322(h)(21) for type of projects that are allowed to use CUAC.

January 29, 2018 Version 17 Application 3/1/2018 G. Annual Residential Operating Expenses

Administrative Advertising: $100 Legal: $1,200 Accounting/Audit: $9,600 Security: Other: Payroll taxes/benefits $8,401 Total Administrative: $19,301

Management Total Management: $38,880

Utilities Fuel: Gas: $19,440 Electricity: $28,303 Water/Sewer: $63,180 Total Utilities: $110,923

Payroll / On-site Manager: $50,400 Payroll Taxes Maintenance Personnel: $50,400 Other: Payroll Taxes/Benefits $31,296 Total Payroll / Payroll Taxes: $132,096 Total Insurance: $28,350

Maintenance Painting: $4,860 Repairs: $3,600 Trash Removal: $19,440 Exterminating: $9,720 Grounds: $7,260 Elevator: $12,000 Other: maintenance $29,420 Total Maintenance: $86,300

Other Expenses Other: Misc Taxes/Licenses/Permits $240 Other: County Monitoring Fee $4,000 Other: (specify here) Other: (specify here) Other: (specify here) Total Other Expenses: $4,240

Total Expenses

Total Annual Residential Operating Expenses: $420,090 Total Number of Units in the Project: 81 Total Annual Operating Expenses Per Unit: $5,186 Total 3-Month Operating Reserve: $418,412 Total Annual Transit Pass / Internet Expense (site amenity election): Total Annual Services Amenities Budget (from project expenses): $11,580 Total Annual Reserve for Replacement: $30,375 Total Annual Real Estate Taxes: $6,000 Other (Specify): Other (Specify):

H. Commercial Income*

Total Annual Commercial/Non-Residential Revenue: Total Annual Commercial/Non-Residential Expenses: Total Annual Commercial/Non-Residential Debt Service: Total Annual Commercial/Non-Residential Net Income:

*The Sources and Uses Budget must separately detail apportioned amounts for residential and commercial space. Separate cash flow projections shall be provided for residential and commercial space. Income from the residential portion of a project shall not be used to support any negative cash flow of a commercial portion, and commercial income should not support the residential portion (Sections 10322(h)(14), (22); 10327(g)(7)).

January 29, 2018 Version 18 Application 3/1/2018 III. PROJECT FINANCING - SECTION 4: LOAN AND GRANT SUBSIDIES

A. Inclusion/Exclusion From Eligible Basis

Funding Sources Included in If lender is not funding source, list source Eligible Basis (HOME, CDBG, etc.) NOT lender. Yes/No Amount HOME Investment Partnership Act (HOME) Yes $2,700,000 Community Development Block Grant (CDBG) N/A RHS 514 N/A RHS 515 N/A RHS 516 N/A RHS 538 N/A HOPE VI N/A McKinney-Vento Homeless Assistance Program N/A MHSA N/A MHP N/A Housing Successor Agency Funds N/A Taxable bond financing N/A FHA Risk Sharing loan? No N/A State: (specify here) N/A Local: City of Vista Loan Yes $5,700,000 Private: (specify here) N/A Other: FHLB AHP Yes $800,000 Other: (specify here) N/A Other: (specify here) N/A

B. Rental Subsidy Anticipated Indicate By Percent Of Units Affected, Any Rental Subsidy Expected To Be Available To The Project.

Approval Date: 22-Feb-18 Approval Date: Source: County of San Diego Source: If Section 8: Project-based vouchers If Section 8: (select one) Percentage: 30.00% Percentage: Units Subsidized: 24 Units Subsidized: Amount Per Year: $380,880 Amount Per Year: Total Subsidy: $5,713,200 Total Subsidy: Term: 15 Term:

C. Pre-Existing Subsidies (Acq./Rehab. or Rehab-Only projects) Indicate The Subsidy Amount For Any Of The Following Currently Utilized By The Project.

Sec 221(d)(3) BMIR: RHS 514: HUD Sec 236: RHS 515: If Section 236, IRP? N/A RHS 521 (rent subsidy): RHS 538: State / Local: HUD Section 8: Rent Sup / RAP: If Section 8: (select one) HUD SHP:

Will the subsidy continue?: No Other: (specify here) If yes enter amount: Other amount:

January 29, 2018 Version 19 Application 3/1/2018 III. PROJECT FINANCING - SECTION 5: THRESHOLD BASIS LIMIT

A. Threshold Basis Limit

Unit Size Unit Basis Limit No. of Units (Basis) X (No. of Units) SRO/STUDIO $196,718 1 Bedroom $226,814 66 $14,969,724 2 Bedrooms $273,600 15 $4,104,000 3 Bedrooms $350,208 4+ Bedrooms $390,154 TOTAL UNITS: 81 TOTAL UNADJUSTED THRESHOLD BASIS LIMIT: $19,073,724 Yes/No (a) Plus (+) 20% basis adjustment for projects paid in whole or part out of Yes public funds subject to a legal requirement for the payment of state or federal prevailing wages or financed in part by a labor-affiliated organization requiring the employment of construction workers who are $3,814,745 paid at least state or federal prevailing wages. List source(s) or labor-affiliated organization(s): San Diego County (Project Based Section 8) Plus (+) 5% basis adjustment for projects that certify that (1) they are No subject to a project labor agreement within the meaning of Section 2500(b)(1) of the Public Contract Code, or (2) they will use a skilled and trained workforce as defined by Section 25536.7 of the Health and Safety Code to perform all onsite work within an apprenticeable occupation in the building and construction trades. (b) Plus (+) 7% basis adjustment for new construction projects required to No provide parking beneath residential units (not "tuck under" parking) or through construction of an on-site parking structure of two or more levels.

(c) Plus (+) 2% basis adjustment for projects where a day care center is part No of the development. (d) Plus (+) 2% basis adjustment for projects where 100 percent of the Low- No Income Units are for Special Needs populations. (e) Plus (+) up to 10% basis adjustment for projects applying under Section No 10325 or Section 10326 of these regulations that include one or more of the features in the section: Item (e) Features. (f) Plus (+) the lesser of the associated costs or up to a 15% basis Yes adjustment for projects requiring seismic upgrading of existing structures,

and/or on-site toxic or other environmental mitigation as certified by the Please Select Type $45,477 project architect or seismic engineer. and Enter Amount: If Yes, select type: Environmental Mitigation 15% Maximum= $2,861,059 (g) Plus (+) local development impact fees required to be paid to local Yes government entities. Certification from local entities assessing fees also $1,578,629 Please Enter Amount: required. WAIVED IMPACT FEES ARE INELIGIBLE. (h) Plus (+) 10% basis adjustment for projects wherein at least 95% of the Yes $1,907,372 project's upper floor units are serviced by an elevator. (i) Plus (+) 10% basis adjustment for a project that is: (i) in a county that has No an unadjusted 9% threshold basis limit for a 2-bedroom unit equal to or less than $400,000; AND (ii) located in a census tract designated on the TCAC/HCD Opportunity Area Map as Highest or High Resource.

TOTAL ADJUSTED THRESHOLD BASIS LIMIT: $26,419,947

HIGH COST TEST Total Eligible Basis $22,056,285 Percentage of the Adjusted Threshold Basis Limit 83.483% Based on information presented in this application, this project is not held to TCAC regulation requirements for high cost projects.

January 29, 2018 Version 20 Application 3/1/2018 ITEM (e) Features

REVIEW REGULATION SECTION 10327(c)(5)(B) PRIOR TO COMPLETING THIS SECTION. THE OPTIONS BELOW ARE PRESENTED WITH ABRIDGED LANGUAGE. N/A 1 Project shall have onsite renewable generation estimated to produce 50% or more of annual tenant electricity use. If combined available roof area is insufficient, project shall have onsite renewable generation based on at least 90% of the available solar accessible roof area. A project not availing itself of the 90% roof area exception may also receive an increase under paragraph (2) only if the renewable generation used to calculate each basis increase does not overlap. Threshold Basis Limit increase of 5%.

N/A 2 Project shall have onsite renewable generation estimated to produce 75% or more of annual common area electricity use. If combined available roof area is insufficient, project shall have onsite renewable generation based on at least 90% of the available solar accessible roof area. A project not availing itself of the 90% roof area exception may also receive an increase under paragraph (1) only if the renewable generation used to calculate each basis increase does not overlap. Threshold Basis Limit increase of 2%.

N/A 3 Newly constructed project buildings shall be 15% or more energy efficient than 2016 Energy Efficiency Standards (CA Code of Regulations, Title 24, Part 6), except that if the local department has determined that building permit applications submitted on or before December 31, 2016 are complete, then newly constructed project buildings shall be 15% or more energy efficiency than the 2013 Energy Efficiency Standards (CA Code of Regulations, Title 24, Part 6). Threshold Basis Limit increase of 4%.

N/A 4 Rehabilitated project buildings shall have an 80% decrease in estimated annual energy use (or improvement in energy efficiency) in the HERS II post rehabilitation. Threshold Basis Limit increase 4%.

N/A 5 Use no irrigation at all, irrigate only with reclaimed water, greywater, or rainwater (excluding water used for community gardens), or irrigate with reclaimed water, greywater, or rainwater in an amount that annually equals or exceeds 20,000 gallons or 300 gallons per unit, whichever is less. Threshold Basis Limit increase 1%.

N/A 6 Community gardens of at least 60 square feet per unit. Permanent site improvements that provide a viable growing space within the project. Threshold Basis Limit increase 1%.

N/A 7 Install bamboo, stained concrete, cork, salvaged or FSC-Certified wood, natural linoleum, natural rubber, or ceramic tile in all kitchens, living rooms, and bathrooms (where no VOC adhesives or backing is also used). Threshold Basis Limit increase 1%.

N/A 8 Install bamboo, stained concrete, cork, salvaged or FSC-Certified wood, natural linoleum, natural rubber, or ceramic tile in all common areas (where no VOC adhesives or backing is also used). Threshold Basis Limit increase 2%.

N/A 9 For new construction projects only, meet all requirements of the U.S. Environmental Protection Agency Indoor Air Plus Program. Threshold Basis Limit increase 2%.

January 29, 2018 Version 21 Application 3/1/2018 IV. SOURCES AND USES BUDGET - SECTION 1: SOURCES AND USES BUDGET Permanent Sources 1)CCRC 2)CCRC 3)City of Vista 4)City 5)County of 6)County 7)FHLB AHP 8) 9) 10) 11) 12) Permanent Permanent Loan accrued/deferr San Diego accrued/deferr TOTAL Loan Tranche Loan Tranche ed interest Loan ed interest 70% PVC for PROJECT TAX CREDIT A B New 30% PVC for COST RES. COST COM'L. COST EQUITY SUBTOTAL Const/Rehab Acquisition LAND COST/ACQUISITION 1Land Cost or Value $3,693,187 $3,693,187 $3,693,187 $3,693,187 2Demolition $336,817 $336,817 $336,817 $336,817 Legal $15,000 $15,000 $15,000 $15,000 Land Lease Rent Prepayment 1Total Land Cost or Value $4,045,004 $4,045,004 $15,000 $4,030,004 $4,045,004 Existing Improvements Value 2Off-Site Improvements Total Acquisition Cost Total Land Cost / Acquisition Cost $4,045,004 $4,045,004 $15,000 $4,030,004 $4,045,004 Predevelopment Interest/Holding Cost Assumed, Accrued Interest on Existing Debt (Rehab/Acq) Excess Purchase Price Over Appraisal REHABILITATION Site Work Structures General Requirements Contractor Overhead Contractor Profit Prevailing Wages General Liability Insurance Other: (Specify) Total Rehabilitation Costs Total Relocation Expenses NEW CONSTRUCTION Site Work $1,978,720 $1,978,720 $508,724 $1,469,996 $1,978,720 $1,978,720 Structures $9,095,943 $9,095,943 $9,095,943 $9,095,943 $9,095,943 General Requirements $759,404 $759,404 $759,404 $759,404 $759,404 Contractor Overhead Contractor Profit $629,927 $629,927 $629,927 $629,927 $629,927 Prevailing Wages $2,552,114 $2,552,114 $2,552,114 $2,552,114 $2,552,114 General Liability Insurance $188,328 $188,328 $188,328 $188,328 $188,328 Bond Premium $107,802 $107,802 $107,802 $107,802 $107,802 Total New Construction Costs $15,312,238 $15,312,238 $13,842,242 $1,469,996 $15,312,238 $15,312,238 ARCHITECTURAL FEES Design $520,000 $520,000 $224,409 $295,591 $520,000 $520,000 Supervision $75,000 $75,000 $75,000 $75,000 $75,000 Total Architectural Costs $595,000 $595,000 $224,409 $295,591 $75,000 $595,000 $595,000 Total Survey & Engineering $295,000 $295,000 $295,000 $295,000 $295,000 CONSTRUCTION INTEREST & FEES Construction Loan Interest $917,567 $917,567 $917,567 $917,567 $583,906 Origination Fee $175,293 $175,293 $175,293 $175,293 $175,293 Credit Enhancement/Application Fee Bond Premium $7,000 $7,000 $7,000 $7,000 $7,000 Title & Recording $20,000 $20,000 $20,000 $20,000 $20,000 Taxes $24,929 $24,929 $24,929 $24,929 $24,929 Insurance $78,091 $78,091 $78,091 $78,091 $78,091 County Loan Accrued/Deferred Interest $88,492 $88,492 $88,492 $88,492 $56,313 City Loan Accrued/Deferred Interest $186,817 $186,817 $186,817 $186,817 $118,883 Total Construction Interest & Fees $1,498,189 $1,498,189 $1,222,880 $186,817 $88,492 $1,498,189 $1,064,415 PERMANENT FINANCING Loan Origination Fee $42,657 $42,657 $42,657 $42,657 Credit Enhancement/Application Fee Title & Recording Taxes Insurance Permanent Lender Legal/Fees $10,000 $10,000 $10,000 $10,000 Perm loan conversion fee $10,000 $10,000 $10,000 $10,000 Total Permanent Financing Costs $62,657 $62,657 $62,657 $62,657 Subtotals Forward $21,808,088 $21,808,088 $14,066,651 $1,581,128 $385,000 $5,500,000 $186,817 $88,492 $21,808,088 $17,266,653 LEGAL FEES Lender Legal Paid by Applicant $50,000 $50,000 $50,000 $50,000 $50,000 Borrower Legal $30,000 $30,000 $30,000 $30,000 $30,000 Total Attorney Costs $80,000 $80,000 $80,000 $80,000 $80,000 RESERVES Rent Reserves Capitalized Rent Reserves Required Capitalized Replacement Reserve 3-Month Operating Reserve 6 Month Operating Reserve $418,412 $418,412 $322,664 $95,748 $418,412 Total Reserve Costs $418,412 $418,412 $322,664 $95,748 $418,412 APPRAISAL Total Appraisal Costs $20,000 $20,000 $20,000 $20,000 $20,000 Total Contingency Cost $875,798 $875,798.00 $875,798 $875,798 $875,798 OTHER PROJECT COSTS

January 29, 2018 Version 22 Sources and Uses Budget 3/1/2018 IV. SOURCES AND USES BUDGET - SECTION 1: SOURCES AND USES BUDGET Permanent Sources 1)CCRC 2)CCRC 3)City of Vista 4)City 5)County of 6)County 7)FHLB AHP 8) 9) 10) 11) 12) Permanent Permanent Loan accrued/deferr San Diego accrued/deferr TOTAL Loan Tranche Loan Tranche ed interest Loan ed interest 70% PVC for PROJECT TAX CREDIT A B New 30% PVC for COST RES. COST COM'L. COST EQUITY SUBTOTAL Const/Rehab Acquisition TCAC App/Allocation/Monitoring Fees $163,528 $163,528 $163,528 $163,528 Environmental Audit $40,000 $40,000 $40,000 $40,000 $40,000 Local Development Impact Fees $1,578,629 $1,578,629 $51,780 $650,054 $76,795 $800,000 $1,578,629 $1,578,629 Permit Processing Fees $225,000 $225,000 $225,000 $225,000 $225,000 Capital Fees Marketing $56,000 $56,000 $56,000 $56,000 Furnishings $50,000 $50,000 $50,000 $50,000 $50,000 Market Study $8,000 $8,000 $8,000 $8,000 Accounting/Reimbursable Soft Cost Contingency $155,205 $155,205 $155,205 $155,205 $155,205 security during construction $110,000 $110,000 $110,000 $110,000 $110,000 permanent relocation $1,764,000 $1,764,000 $1,764,000 $1,764,000 City legal/cost review $25,000 $25,000 $25,000 $25,000 $25,000 construction manager/prevailing wage $200,000 $200,000 $200,000 $200,000 $200,000 consultant Construction closing legal $30,000 $30,000 $30,000 $30,000 $30,000 Total Other Costs $4,405,362 $4,405,362 $255,308 $650,054 $2,700,000 $800,000 $4,405,362 $2,413,834 SUBTOTAL PROJECT COST $27,607,660 $27,607,660 $14,066,651 $2,259,100 $2,006,600 $5,500,000 $186,817 $2,700,000 $88,492 $800,000 $27,607,660 $20,656,285 DEVELOPER COSTS Developer Overhead/Profit $1,600,000 $1,600,000 $1,400,000 $200,000 $1,600,000 $1,400,000 Consultant/Processing Agent Project Administration Broker Fees Paid to a Related Party Construction Oversight by Developer Other: (Specify) Total Developer Costs $1,600,000 $1,600,000 $1,400,000 $200,000 $1,600,000 $1,400,000 TOTAL PROJECT COST $29,207,660 $29,207,660 $15,466,651 $2,259,100 $2,006,600 $5,700,000 $186,817 $2,700,000 $88,492 $800,000 $29,207,660 $22,056,285 Note: Syndication Costs shall NOT be included as a project cost. Bridge Loan Expense During Construction: Calculate Maximum Developer Fee using the eligible basis subtotals. Total Eligible Basis: $22,056,285 DOUBLE CHECK AGAINST PERMANENT FINANCING TOTALS: $15,466,651 $2,259,100 $2,006,600 $5,700,000 $186,817 $2,700,000 $88,492 $800,000

Funding sources and costs should be aligned appropriately. For example, public funding sources for land purchase or construction costs should be shown as paying for these costs. Do not randomly select funding sources for line item costs if they have a dedicated source of payment.

1 Required: evidence of land value (see Tab 1). Land value must be included in Total Project Cost and Sources and Uses Budget (includes donated or leased land). Except for non-competitive projects with donated land, TCAC will not accept a budget with a nominal land value. Please refer to the TCAC website for additional information and guidance. 2 Required: include a detailed explanation of Demolition and Offsite Improvements requirements as well as a cost breakdown in Attachment 12, Construction and Design Description.

Note: The conditional formatting embedded in this Sources and Uses Budget workbook tests only for mathematical errors, i.e. whether sum total of Sources (Column R) matches Total Project Cost (Column B) and whether each source listed in the Sources and Uses Budget workbook (Row 103) matches that of Permanent Financing in the Application workbook (Row 106). The conditional formatting does NOT test for any regulatory threshold or feasibility requirements. Applicants are advised to conduct their own due diligence and not rely upon the conditional formatting in this workbook.

FOR PLACED IN SERVICE APPLICATION SUBMISSIONS: SYNDICATION (Investor & General Partner) CERTIFICATION BY OWNER: Organizational Fee As owner(s) of the above-referenced low-income housing project, I certify under penalty of perjury, that the project costs contained herein are, to the best of my knowledge, accurate and actual costs associated with the construction, Bridge Loan Fees/Exp. acquisition and/or rehabilitation of this project and that the sources of funds shown are the only funds received by the Partnership for the development of the project. I authorize the California Tax Credit Allocation Committee to utilize this Legal Fees information to calculate the low-income housing tax credit. Consultant Fees Accountant Fees Tax Opinion Other Signature of Owner/General Partner Date

Total Syndication Costs Printed Name of Signatory Title of Signatory

CERTIFICATION OF CPA/TAX PROFESSIONAL: As the tax professional for the above-referenced low-income housing project, I certify under penalty of perjury, that the percentage of aggregate basis financed by tax-exempt bonds is:

Signature of Project CPA/Tax Professional Date

January 29, 2018 Version 23 Sources and Uses Budget 3/1/2018 V. BASIS AND CREDITS - SECTION 1: BASIS AND CREDITS

Determination of Eligible and Qualified Basis A. Basis and Credits

70% PVC for New Const/ 30% PVC for Rehab Acquisition Total Eligible Basis: $22,056,285 Ineligible Amounts Subtract All Grant Proceeds Used to Finance Costs in Eligible Basis: Subtract Non-Qualified Non-Recourse Financing: Subtract Non-Qualifying Portion of Higher Quality Units: Subtract Photovoltaic Credit (as applicable): Subtract Historic Credit (residential portion only): Subtract Ineligible Basis related to Excess Parking: $25,515 Subtract (specify other ineligible amounts): Total Ineligible Amounts: $25,515 Total Eligible Basis Amount Voluntarily Excluded: $8,277,831 Total Basis Reduction: ($8,303,346) Total Requested Unadjusted Eligible Basis: $13,752,939 Total Adjusted Threshold Basis Limit: $26,419,947 *Qualified Census Tract or Difficult to Develop Area Adjustment: 130% 100% Total Adjusted Eligible Basis: $17,878,821 Applicable Fraction: 100% 100% Qualified Basis: $17,878,821 Total Qualified Basis: $17,878,821 *130% boost if your project is located in a DDA or QCT, or Reg. Section 10317(d) as applicable. (Boost is auto calculated from your selection in: II. APPLICATION - SECTION 2: GENERAL AND SUMMARY INFORMATION - B)

B. Determination of Federal Credit

New Const/ Rehab Acquisition Qualified Basis: $17,878,821 *Applicable Percentage: 9.00% 3.25% Subtotal Annual Federal Credit: $1,609,094 Total Combined Annual Federal Credit: $1,609,094 * Applicants are required to use these percentages in calculating credit at the application stage.

January 29, 2018 Version 24 Basis and Credits 3/1/2018 C. Determination of Minimum Federal Credit Necessary For Feasibility Total Project Cost $29,207,660 Permanent Financing $13,741,009 Funding Gap $15,466,651 Federal Tax Credit Factor $0.96120 Federal tax credit factor must be at least $1.00 for self-syndication projects or at least $0.85 for all other projects.

Total Credits Necessary for Feasibility $16,090,940 Annual Federal Credit Necessary for Feasibility $1,609,094 Maximum Annual Federal Credits $1,609,094 Equity Raised From Federal Credit $15,466,651

Remaining Funding Gap

If Applying For State Credit Complete Section (D) & (E)

D. Determination of State Credit NC/Rehab Acquisition State Credit Basis $13,752,939 New construction or rehabilitation basis only; No acquisition basis except for At-Risk projects eligible for State Credit on the acquisition basis at the 0.13 factor when no 130% basis increase is used Factor Amount 30% 13% Maximum Total State Credit $4,125,882 $0

E. Determination of Minimum State Credit Necessary for Feasibility State Tax Credit Factor State tax credit factor must be at least $0.80 for "certified" state credits; at least $0.65 for self-syndication projects; or at least $0.60 for all other projects

State Credit Necessary for Feasibility Maximum State Credit Equity Raised from State Credit

Remaining Funding Gap

January 29, 2018 Version 25 Basis and Credits 3/1/2018 VI. POINTS SYSTEM - SECTION 1: POINTS SYSTEM

A. General Partner and Management Company Characteristics Maximum 9 Points

A(1) General Partner Experience 6 Points General Partner Name: Wakeland Housing & Development Corporation

Select from ONE of the following two options: 5 or more projects in service more than 3 years, including 1 in service more than 5 years and 2 California LIHTC projects

Special Needs housing type project opting for 5 project experience category: N/A

For Special Needs housing type projects applying through the Nonprofit or Special Needs set-asides only: (select one if applicable) To qualify for this option, all projects must qualify as Special Needs. The California LIHTC project need not be one of the Special Needs projects.

To receive points under this subsection for projects in existence for more than 3 years from the filing deadline date, the applicant must submit a certification from a 3rd party certified public accountant (CPA) that the projects for which points are requested have maintained a positive operating cash flow from typical residential income alone (e.g. rents, rental subsidies, late fees, forfeited deposits, etc.) for the year in which each development’s last financial statement has been prepared and have funded reserves in accordance with the partnership agreement and any applicable loan documents. This certification must list the specific projects for which the points are being requested. The CPA certification may be in the form of an agreed upon procedure report that includes funded reserves as of the report date, which shall be within 60 days of the application deadline, unless the general partner or key person has no current projects which are eligible for points in which case the report date shall be after the date from which the general partner or key person separated from the last eligible project. To obtain points for projects previously owned by the proposed general partner, a similar certification must be submitted with respect to the last full year of ownership by the proposed general partner, along with verification of the number of years that the project was owned by that general partner. This certification must list the specific projects for which the points are being requested. For tribal applicants contracting with a developer who will not be a general partner to receive points, see Reg. Section 10325(c)(1) and Checklist Tab 21.

Total Points for General Partner Experience: 6

A(2) Management Company Experience 3 Points Select from ONE of the following two options: 11 or more projects managed more than 3 years, including 2 California LIHTC projects

Special Needs housing type project opting for 11 project experience category: N/A

For Special Needs housing type projects applying through the Nonprofit or Special Needs set-asides only: (select one if applicable) To qualify for this option, all projects must qualify as Special Needs. The California LIHTC project need not be one of the Special Needs projects.

Management Company Name: Con Am Management

Total Points for Management Company Experience: 3

January 29, 2018 Version 26 Points System 3/1/2018 Points in subsections (A) and (B) above will be awarded in the highest applicable category and are not cumulative. For maximum points in either subsection (A) or (B) above, a completed application attachment for the general partner or for the management agent, respectively, must be provided. For points to be awarded in subsection (B), an enforceable management agreement executed by both parties for the subject application must be submitted at the time of application. "Projects" as used in this subsections (A) and (B) means multifamily, rental, affordable developments of over 10 affordable units that are subject to a recorded regulatory agreement or, in the case of housing on tribal lands, where federal HUD funds have been utilized in affordable rental developments. General Partner and Management Company experience points may be given based on the experience of the principals involved, or on the experience of municipalities or other nonprofit entities that have experience but have formed single-asset entities for each project in which they have participated, notwithstanding that the entity itself would not otherwise be eligible for such points.

Alternatively, a management company may receive 2 points if it provides evidence that the management agent assigned to the project, either on-site or with management responsibilities for the site, has been certified, prior to application deadline, by a housing tax credit certification examination by a nationally recognized housing tax credit compliance entity and be on a list maintained by the Committee. These points may substitute for other management company experience but will not be awarded in addition to such points.

General partners and management companies with fewer than 2 active California LIHTC projects for more than 3 years, and general partners and management companies for projects requesting points under the special needs categories with no active California LIHTC projects for more than 3 years, should refer to Regulation Section 10325(c)(1) and Checklist Items Tabs 21 and 22 for additional requirements.

Total Points for General Partner & Management Company Experience: 9

January 29, 2018 Version 27 Points System 3/1/2018 B. Housing Needs Maximum 10 Points

Senior 10 Points Select one if project is a scattered site acquisition and/or rehabilitatN/A Total Points for Housing Needs: 10

C. Site & Service Amenities

C(1) Site Amenities Maximum 15 Points

Amenities must be appropriate to the tenant population served. To receive points the amenity must be in place at the time of application. TCAC Regulation Sections 10325(c)(4)(A), 10325(c)(4)(A)(1) and 10325(c)(4)(A)(5) provide information on the limited exceptions to this requirement. The application must include a map scaled for distance using a standardized radius from the development site as determined by the Committee. Measurement from the project to a site must not cross significant physical barriers. The map must show the distance of the site amenities from the development site. An application proposing a project located on multiple scattered sites shall be scored proportionately in the site and service amenities based upon (i) each site’s score, and (ii) the percentage of units represented by each site, except that for scattered site projects of less than 20 units, service amenities shall be scored in the aggregate across all sites. Applicants must provide color photographs, a contact person and a contact telephone number for each requested site amenity. Any inaccurate information will be subject to negative points. No more than 15 points will be awarded in this category. Only one point award will be available in each of the subcategories (a-h) listed below. Site amenity points are not applicable to projects that apply and are awarded under the Native American apportionment. However, for those applicants unsuccessful in the apportionment and considered under the Rural set-aside, site amenity scoring will be applicable.

Amenities may include:

a) Transit

(i) Located where there is a bus rapid transit station, light rail station, commuter rail station, ferry ter 7 Points station, or public bus stop within 1/3 mile of the project site with service at least every 30 minutes during the hours of 7-9 a.m. and 4-6 p.m. Monday through Friday (or at least two departures during each peak period for the commuter rail station or ferry terminal), and the project’s density exceeds 25 units per acre.

(ii) The project site is within 1/3 mile of a bus rapid transit station, light rail station, commuter rail sta 6 Points ferry terminal, bus station, or public bus stop with service at least every 30 minutes during the hours of 7-9 a.m. and 4-6 p.m. Monday through Friday (or at least two departures during each peak period for the commuter rail station or ferry terminal).

(iii) The project site is within 1/2 mile of a bus rapid transit station, light rail station, commuter rail sta 5 Points ferry terminal, bus station, or public bus stop with service at least every 30 minutes during the hours of 7-9 a.m. and 4-6 p.m. Monday through Friday (or at least two departures during each peak period for the commuter rail station or ferry terminal).

(iv) The project site is within 1/3 mile of a bus rapid transit station, light rail station, commuter rail sta 4 Points ferry terminal, bus station, or public bus stop. (For rural set-aside projects, these points may be awarded where van or dial-a-ride service is provided to tenants.)

(v) The project site is within 1/2 mile of a bus rapid transit station, light rail station, commuter rail sta 3 Points ferry terminal, bus station, or public bus stop.

Select one: (i)

In addition to meeting one of the categories above (i through v), points are available to applicants committing to provide residents free transit passes or discounted passes to each rent restricted unit for at least 15 years:

Select one: N/A

N/A A private bus or transit system providing free service may be substituted with prior approval from the CTCAC Executive Director. This prior approval must be received before the application deadline and the bus or transit system must meet the relevant headway and distance criteria stated above. If pre-approved, select applicable point category above.

Total Points for Transit Amenity: 7

January 29, 2018 Version 28 Points System 3/1/2018 b) Public Park

(i) The site is within 1/2 mile of a public park (1 mile for Rural set-aside projects) (not 3 Points including school grounds unless there is a bona fide, formal joint-use agreement between the jurisdiction responsible for the park’s/recreation facilities and the school district or private school providing availability to the general public of the school grounds and/or facilities) or a community center accessible to the general public.

Joint-use agreement (if yes, please provide a copy) N/A

(ii) The site is within 3/4 mile (1.5 miles for Rural set-aside). 2 Points

Select one: N/A

Total Points for Public Park Amenity: 0

c) Book-Lending Public Library

(i) The site is within 1/2 mile of a book-lending public library that also allows for inter-branch 3 Points lending when in a multi-branch system (1 mile for Rural set-aside projects).

(ii) The site is within 1 mile of a book-lending public library that also allows for inter-branch 2 Points lending when in a multi-branch system (2 miles for Rural set-aside projects).

Select one: (i)

Total Points for Public Library Amenity: 3

d) Full-Scale Grocery Store, Supermarket, Neighborhood Market, or Farmers' Market Please refer to Checklist Items for supporting documentation requirements

(i) The site is within 1/2 mile of a full scale grocery store/supermarket of at least 25,000 gross 5 Points interior square feet where staples, fresh meat, and fresh produce are sold (1 mile for Rural set-aside projects).

(ii) The site is within 1 mile of a full scale grocery store/supermarket of at least 25,000 gross 4 Points interior square feet where staples, fresh meat, and fresh produce are sold (2 mile for Rural set-aside projects).

(iii) The site is within 1.5 mile of a full scale grocery store/supermarket of at least 25,000 gross 3 Points interior square feet where staples, fresh meat, and fresh produce are sold (3 mile for Rural set-aside projects).

(iv) The site is within 1/4 mile of a neighborhood market of 5,000 gross interior square feet or 4 Points more where staples, fresh meat, and fresh produce are sold (1/2 mile for Rural set-aside projects).

(v) The site is within 1/2 mile of a neighborhood market of 5,000 gross interior square feet or 3 Points more where staples, fresh meat, and fresh produce are sold (1 mile for Rural set-aside projects).

(vi) The site is within 1/2 mile of a weekly farmers' market on the list of Certified Farmers' 2 Points Markets by the California Department of Food and Agriculture and operating at least 5 months in a calendar year.

(vii) The site is within 1 mile of a weekly farmers' market on the list of Certified Farmers' 1 Point Markets by the California Department of Food and Agriculture and operating at least 5 months in a calendar year.

Select one: (i)

Total Points for Full-Scale Grocery Store/Supermarket or Convenience Market Amenity: 5

January 29, 2018 Version 29 Points System 3/1/2018 e) Public Elementary, Middle, or High School

(i) For a qualifying development, the site is within 1/4 mile of a public elementary school; 3 Points 1/2 mile of a public middle school; or 1 mile of a public high school (an additional 1/2 mile for each public school type for Rural set-aside projects), and the site is within the attendance area of that school.

(ii) The site is within 3/4 mile of a public elementary school; 1 mile of a public middle 2 Points school; or 1.5 miles of a public high school (an additional 1/2 mile for each public school type for Rural set-aside projects), and the site is within the attendance area of that school.

Select one: N/A

Total Points for Public Elementary, Middle, or High School Amenity: 0

f) Senior Developments: Daily Operated Senior Center

(i) For a senior development the project site is within 1/2 mile of a daily operated senior 3 Points center or a facility offering daily services to seniors (not on the project site) (1 mile for Rural set-aside).

(ii) The project site is within 3/4 mile of a daily operated senior center or a facility offering 2 Points daily services to seniors (not on the project site) (1.5 miles for Rural Set-aside).

Select one: N/A

Total Points for Daily Operated Senior Center Amenity: 0

g) Special Needs Development: Population Specific Service Oriented Facility

(i) For a special needs development, the site is located within 1/2 mile of a facility that 3 Points operates to serve the population living in the development.

(ii) The project site is located within 1 mile of a facility that operates to serve the 2 Points population living in the development.

Select one: N/A

Total Points for Population Specific Service Oriented Facility Amenity: 0

h) Medical Clinic or Hospital

(i) The site is within 1/2 mile (1 mile for Rural Set-aside) of a qualifying medical clinic with 3 Points a physician, physician's assistant, or nurse practitioner onsite for a minimum of 40 hours each week, or hospital (not merely a private doctor’s office).

(ii) The site is within 1 mile (1.5 miles for Rural Set-aside) of a qualifying medical clinic 2 Points with a physician, physician's assistant, or nurse practitioner onsite for a minimum of 40 hours each week, or hospital (not merely a private doctor’s office).

Select one: N/A

Total Points for Medical Clinic or Hospital Amenity: 0

January 29, 2018 Version 30 Points System 3/1/2018 i) Pharmacy

(i) The site is within 1/2 mile of a pharmacy (1 mile for Rural Set-aside). (This category 2 Points may be combined with the other site amenities above).

(ii) The site is within 1 mile of a pharmacy (2 miles for Rural Set-aside). (This category 1 Point may be combined with the other site amenities above).

Select one: (i)

Total Points for Pharmacy: 2

j) In-unit High Speed Internet Service

(i) High speed internet service with a 1.5 megabits/second capacity provided in each Low-Income 2 Points Unit free of charge to the tenants for a minimum of 15 years, and available within 6 months of the project's placed-in-service date. If internet service is selected, it must be provided even if it is not needed for points.

(ii) Rural set-aside only: High speed internet service with a 1.5 megabits/second capacity 3 Points provided in each unit free of charge to the tenants for a minimum of 15 years, and available within 6 months of the project's placed-in-service date. If internet service is selected, it must be provided even if it is not needed for points.

Select one: N/A

Total Points for Internet Service: 0

k) Highest or High Resources Area

(i) The project is a new construction large family project, except for an inclusionary project as 8 Points defined in Section 10325(c)(9)(C), and the site is located in a census tract designated on the TCAC/HCD Opportunity Area Map as Highest or High Resource

Select one: N/A

Total Points for Internet Service: 0

Total Points for Site Amenities: 17

January 29, 2018 Version 31 Points System 3/1/2018 Site Amenity Contact List:

Amenity Name: Bus Stop #305 Amenity Name: Sprinterlight rail Address: S. Santa Fe & Civic Center Dr. Address: 810 Phillips Street City, Zip Vista, 92084 City, Zip Vista, CA 92083 Contact Person: Contact Person: Phone: Ext.: Phone: Ext.: Amenity Type: Transit Station/Transit Stop Amenity Type: Transit Station/Transit Stop Website: www.gonstd.com Website: www.gonctd.com Distance in miles: 0.12 mi Distance in miles: 0.33 mi

Amenity Name: CVS Pharmacy Amenity Name: Vons Address: 883 . S. Santa Fe Avenue Address: 940 S. Santa Fe Avenue City, Zip Vista, CA 92083 City, Zip Vista, CA 92084 Contact Person: Contact Person: Phone: (760) 630-2134 Ext.: Phone: (760) 758-0620 Ext.: Amenity Type: Pharmacy Amenity Type: Grocery/Farmers' Market Website: www.cvs.com Website: local.vons.com Distance in miles: 0.10 mi Distance in miles: 0.12 mi

Amenity Name: Vista Library Amenity Name: Address: 700 Eucalyptus Avenue Address: City, Zip Vista, CA 92084 City, Zip Contact Person: Cecilia Rincon Contact Person: Phone: (760) 643-5100 Ext.: Phone: Ext.: Amenity Type: Book-Lending Public Library Amenity Type: Website: www.sdcl.org Website: Distance in miles: 0.47 mi Distance in miles:

Amenity Name: Amenity Name: Address: Address: City, Zip City, Zip Contact Person: Contact Person: Phone: Ext.: Phone: Ext.: Amenity Type: Amenity Type: Website: Website: Distance in miles: Distance in miles:

Amenity Name: Amenity Name: Address: Address: City, Zip City, Zip Contact Person: Contact Person: Phone: Ext.: Phone: Ext.: Amenity Type: Amenity Type: Website: Website: Distance in miles: Distance in miles:

January 29, 2018 Version 32 Points System 3/1/2018 C(2) Service Amenities Maximum 10 Points

Projects that provide high-quality services designed to improve the quality of life for tenants are eligible to receive points for service amenities. Services must be appropriate to meet the needs of the tenant population served and designed to generate positive changes in the lives of tenants. An application proposing a project located on multiple scattered sites (all sites within a five-mile diameter range) shall be scored proportionately in the site and service amenities based upon (i) each site’s score, and (ii) the percentage of units represented by each site, except that for scattered site projects of less than 20 units, service amenities shall be scored in the aggregate across all sites.

Except as provided below and in Reg. Section 10325(c)(4)(B), in order to receive points in this category physical space for service amenities must be available when the development is placed-in-service. Services space must be located inside the project and provide sufficient square footage, accessibility and privacy to accommodate the proposed services. The amenities must be available within 6 months of the project’s placed-in-service date. Applicants must commit that services will be provided for a period of 15 years.

All services must be of a regular and ongoing nature and provided to tenants free of charge (except for day care services or any charges required by law). Services must be provided on-site except that projects may use off-site services within 1/2 mile of the development (1 1/2 mile for Rural set-aside projects) provided that they have a written agreement with the service provider enabling the development’s tenants to use the services free of charge (except for day care and any charges required by law) and that demonstrate that provision of on-site services would be duplicative. All organizations providing services for which the project is claiming service amenities points must have at least 24 months experience providing services to one of the target populations to be served by the project.

Items 1 through 6 are applicable to Large Family, Senior, and At-Risk projects. Items 7 through 12 are applicable to Special Needs projects. Special needs projects with 75% or more but less than 100% special needs units must demonstrate that all tenants will receive an appropriate level of services. Special needs projects with less than 75% special needs units will be scored proportionately in the service amenity category based upon (i) the services provided to special needs and non-special needs units, respectively; and (ii) the percentage of units represented by special needs and non-special needs units, respectively. Items 1 through 12 are mutually exclusive. One proposed service may not receive points under two different categories, except in the case of proportionately-scored services for special needs projects.

Applications must include a services sources and uses budget clearly describing all anticipated income and expenses associated with the services program and that aligns with the services commitments provided (i.e. contracts, MOUs, letters, etc.) Applications shall receive points for services only if the proposed services budget adequately accounts for the level of service. The budgeted amount must reasonably be expected to cover the costs of the proposed level of service. PLEASE REFER TO REGULATION SECTION 10325(c)(5)(B) FOR COMPLETE SERVICE AMENITY POINTS REQUIREMENTS.

No more than 10 points will be awarded in this category. The service budget spreadsheet must be completed. Amenities may include, but are not limited to:

January 29, 2018 Version 33 Points System 3/1/2018 a) Large Family, Senior, At-Risk projects: Yes (1) Service Coordinator. Responsibilities must include, but are not limited to: (a) providing 5 points tenants with information about available services in the community, (b) assisting tenants to access services through referral and advocacy, and (c) organizing community-building and/or other enrichment activities for tenants (such as holiday events, tenant council, etc.). Minimum ratio of 1 Full Time Equivalent (FTE) Service Coordinator to 600 bedrooms.

N/A Service Coordinator as listed above, except: 3 points Minimum ratio of 1 FTE Service Coordinator to 1,000 bedrooms.

N/A (2) Other Services Specialist. Must provide individualized assistance, counseling and/or 5 points advocacy to tenants, such as to assist them to access education, secure employment, secure benefits, gain skills or improve health and wellness. Includes, but is not limited to: Vocational/Employment Counselor, ADL or Supported Living Specialist, Substance Abuse or Mental Health Counselor, Peer Counselor, Domestic Violence Counselor. Minimum ratio of 1 FTE Services Specialist to 600 bedrooms.

N/A Other Services Specialist as listed above, except: 3 points Minimum ratio of 1 FTE Services Specialist to 1,000 bedrooms.

N/A (3) Adult educational, health and wellness, or skill building classes. Includes but is not 7 points limited to: financial literacy, computer training, home-buyer education, GED, resume building, ESL, nutrition, exercise, health information/awareness, art, parenting, on-site food cultivation and preparation, and smoking cessation classes. Minimum of 84 hours instruction each year (42 hours for small developments of 20 units or less).

Yes Adult educational, health & wellness, or skill building classes as listed above, except: 5 points Minimum of 60 hours instruction each year (30 hours for small developments).

N/A Adult educational, health & wellness, or skill building classes as listed above, except: 3 points Minimum of 36 hours instruction each year (18 hours for small developments).

N/A (4) Health and wellness services and programs. Such services and programs shall provide 5 points individualized support to tenants (not group classes) and need not be provided by licensed individuals or organizations. Includes, but is not limited to visiting nurses programs, intergenerational visiting programs, or senior companion programs. Minimum of 100 hours of services per year for each 100 bedrooms.

N/A Health and wellness services and programs as listed above, except: 3 points Minimum of 60 hours of services per year for each 100 bedrooms.

N/A Health and wellness services and programs as listed above, except: 2 points Minimum of 40 hours of services per year for each 100 bedrooms.

N/A (5) Licensed child care. Shall be available 20 hours or more per week, Monday through 5 points Friday, to residents of the development. (Only for large family projects or other projects in which at least 25% of Low-Income Units are 3 bedrooms or larger.)

N/A (6) After school program for school age children. Includes, but is not limited to tutoring, 5 points mentoring, homework club, art and recreational activities. (Only for large family projects or other projects in which at least 25% of Low-Income Units are 3 bedrooms or larger). Minimum of 10 hours per week, offered weekdays throughout the school year.

N/A After school program for school age children as listed above, except: 3 points Minimum of 6 hours per week, offered weekdays throughout the school year.

N/A After school program for school age children as listed above, except: 2 points Minimum of 4 hours per week, offered weekdays throughout the school year.

January 29, 2018 Version 34 Points System 3/1/2018 b) Special Needs projects: N/A (7) Case Manager. Responsibilities must include (but are not limited to) working with tenants 5 points to develop and implement an individualized service plan, goal plan or independent living plan. Minimum ratio of 1 Full Time Equivalent (FTE) Case Manager to 100 bedrooms.

N/A Case Manager as listed above, except: 3 points Minimum ratio of 1 FTE Case Manager to 160 bedrooms.

N/A (8) Service Coordinator or Other Services Specialist. Service coordinator responsibilities 5 points shall include, but are not limited to: (a) providing tenants with information about available services in the community, (b) assisting tenants to access services through referral and advocacy, and (c) organizing community-building and/or other enrichment activities for tenants (such as holiday events, tenant council, etc.). Other services specialist must provide individualized assistance, counseling and/or advocacy to tenants, such as to assist them to access education, secure employment, secure benefits, gain skills or improve health and wellness. Includes, but is not limited to: Vocational/Employment Counselor, ADL or Supported Living Specialist, Substance Abuse or Mental Health Counselor, Peer Counselor, Domestic Violence Counselor. Minimum ratio of 1 FTE Service Coordinator or Other Services Specialist to 360 bedrooms.

N/A Service Coordinator or Other Services Specialist as listed above, except: 3 points Minimum ratio of 1 FTE Case Manager to 600 bedrooms.

N/A (9) Adult educational, health and wellness, or skill building classes. Includes but is not 5 points limited to: financial literacy, computer training, home-buyer education, GED, resume building, ESL, nutrition, exercise, health information/awareness, art, parenting, on-site food cultivation and preparation, and smoking cessation classes. Minimum of 84 hours of instruction each year (42 hours for small developments of 20 units or less).

N/A Adult educational, health & wellness, or skill building classes as listed above, except: 3 points Minimum of 60 hours of instruction each year (30 hours for small developments).

N/A Adult educational, health & wellness, or skill building classes as listed above, except: 2 points Minimum of 36 hours of instruction each year (18 hours for small developments).

N/A (10) Health or behavioral health services provided by appropriately-licensed organization or 5 points individual. Includes but is not limited to: health clinic, adult day health center, medication management services, mental health services and treatment, substance abuse services and treatment.

N/A (11) Licensed child care. Shall be available 20 hours or more per week, Monday through 5 points Friday, to residents of the development. (Only for large family projects or other projects in which at least 25% of Low-Income Units are 3 bedrooms or larger.)

N/A (12) After school program for school age children. Includes, but is not limited to tutoring, 5 points mentoring, homework club, art and recreational activities. (Only for large family projects or other projects in which at least 25% of Low-Income Units are 3 bedrooms or larger). Minimum of 10 hours per week, offered weekdays throughout the school year.

N/A After school program for school age children as listed above, except: 3 points Minimum of 6 hours per week, offered weekdays throughout the school year.

N/A After school program for school age children as listed above, except: 2 points Minimum of 4 hours per week, offered weekdays throughout the school year.

The service budget spreadsheet must be completed. Total Points for Service Amenities: 10

January 29, 2018 Version 35 Points System 3/1/2018 D. Sustainable Building Methods Maximum 5 Points REVIEW REG. SECTION 10325(c)(5) BEFORE PROCEEDING APPLICANTS WILL BE HELD TO REGULATORY REQUIREMENTS. THE APPLICATION MAY CONTAIN ABBREVIATED DESCRIPTIONS OF THE REQUIREMENTS FOR THIS SECTION.

D(1) New Construction and Adaptive Reuse projects select from the following features: Yes a. Develop the project in accordance with the minimum requirements with any one of the following programs: GreenPoint Rated Program 5 Points

N/A b. ENERGY EFFICIENCY EITHER: Energy efficiency as indicated in Reg. Section 10325(c)(5)(B) beyond the requirements in the 2016 Title 24, Part 6 of the California Building Code (2016 Standards): Better than the 2016 Standards N/A 0 Points

If the local building department has determined that building permit applications submitted on or before December 31, 2016 are complete, then energy efficiency beyond the requirements in the 2013 Title 24, Part 6 of the California Building Code (2013 Standards) Better than the 2013 Standards N/A 0 Points

OR: Energy efficiency with renewable energy that provides the following percentages of project tenants' energy loads: Low Rise (1-3 habitable stories) N/A 0 Points

Multifamily of 4+ habitable stories N/A 0 Points

D(2) Rehabilitation projects select from the following features: N/A a. Develop the project in accordance with the minimum requirements with any one of the following programs: N/A 0 Points

N/A b. Rehabilitate to improve energy efficiency; points awarded based on percentage decrease in estimated Time Dependent Valuation energy use post-rehabilitation: Improvement over current: N/A 0 Points

N/A c. Additional rehabilitation project measures (chose one or more of the following three categories):

1. PHOTOVOLTAIC / SOLAR 0 Points N/A

N/A 2. SUSTAINABLE BUILDING MANAGEMENT PRACTICES, INCLUDING BOTH OF THE FOLLOW 0 Points Develop project-specific maintenance manual, including information on all energy and green building features Undertake formal building systems commissioning, retro-commissioning, or re-commissioning

N/A 3. INDIVIDUALLY METER (OR SUB-METER CURRENT MASTER-METERED) GAS, 0 Points ELECTRICITY, OR CENTRAL HOT WATER SYSTEMS FOR ALL TENANTS

E(3) New Construction and Rehabilitation projects: N/A d. WATER EFFICIENCY: 0 Points N/A

To receive these points, the applicant and the project architect must certify in the application which of the above items will be included in the project’s design and specifications, and further must certify at the project’s placed-in-service date that the items were completed. In addition, certain point categories require completion of the TCAC Sustainable Building Method Workbook and accompanying documentation by a qualified energy analyst at application and placed-in-service stages. Refer to Reg. Section 10325(c)(5), Checklist Item Tab 25, and the TCAC website for requirements related to the TCAC Sustainable Building Method Workbook. Refer to Reg. Section 10325(c)(5)(G) for specific Compliance and Verification requirements. Projects receiving points under this category that fail to meet the requirements of Reg. Section 10325(c)(5) will be subject to negative points under Section 10325(c)(2).

Total Points For Sustainable Building Methods: 5

January 29, 2018 Version 36 Points System 3/1/2018 Maximum 52 Points E. Lowest Income E(1) Lowest Income Restriction for All Units 50 Points The “Percent of Area Median Income” category may be used only once. For instance, 50% of Low-Income Units at 50% of Area Median Income (AMI) cannot be used twice for 100% at 50% and receive 50 points, nor can 50% of Low- Income Units at 50% of Area Median Income for 25 points and 40% of Low-IncomeUnits at 50% of Area Median Income be used for an additional 20 points. However, the “Percent of Low-Income Units” may be used multiple times. For example, 50% of Low-Income Units at 50% of Area Median Income for 25 points may be combined with another 50% of Low-Income Units at 45% of Area Median Income to achieve the maximum points. All projects must score at least 45 points in this category to be eligible for 9% Tax Credit. RESYNDICATION PROJECTS CHOOSING HOLD HARMLESS RENTS CANNOT RECEIVE LOWEST INCOME POINTS FOR HOLD HARMLESS RENTS. CURRENT RENT LIMITS MUST BE USED FOR LOWEST INCOME POINT SCORING

*Available to Rural set-aside projects only. **60% AMI is included as a place-holder and will not receive any points.

Percent of Area Median Income (AMI)

**60% *55% 50% 45% 40% 35% 30%

50% 25.0* 37.5 45% 22.5* 33.8 40% 10.0* 20.0 30.0 Percent of Low- 35% 8.8 17.5 26.3 35.0 50.0 Income Units 30% 7.5 15.0 22.5 30.0 37.5 45.0 (exclusive of manager’s units) 25% 6.3 12.5 18.8 25.0 31.3 37.5 20% 5.0 10.0 15.0 20.0 18.8 30.0 15% 3.8 7.5 11.3 15.0 18.8 22.5 10% 2.5 5.0 7.5 10.0 12.5 15.0

January 29, 2018 Version 37 Points System 3/1/2018 Consolidate your units before entering your information into the table Do not enter any non-qualifying units into the table

Percent of Percentage of Low- Percent of Low- Number of Targeted Area Median Income Units Income Units Points Earned Low-Income Units Income (AMI) (before rounding (exclusive of (30% - 55%)* down) manager’s units)

24 30 30.00 30 45 35 0.00 0 0 40 0.00 0 0 8 45 10.00 10 7.5 28 50 35.00 35 17.5 0 -Rural only 0.00 0 0 0 -Rural only 0.00 0 0 20 60 25.00 25 0 80 Total Points Requested: 70 *If 60% AMI Units are less than 10% of Total Low-Income Units, Leave Cell E660 Blank.

E(2) Lowest Income for 10% of Total Low-Income Units at 30% AMI 2 Points A project that agrees to have at least 10% of its Low-Income Units available for tenants with incomes no greater than 30% AMI and agrees to restrict the rents on those units accordingly can receive two additional points. The 30% AMI units must be spread across the various bedroom sizes, starting with the largest bedroom count units (e.g. four bedroom units) and working down to the smaller bedroom count units, assuring that at least 10% of the larger units are proposed at 30% AMI. So long as the project meets the 10% standard as a whole, the 10% standard need not be met among all of the smaller units. TCAC may correct applicant errors in carrying out this largest-to-smallest unit protocol.

Total Number Percentage of Number of Low- of Low-Income Low-Income Income Units Units per Units (by Bedroom @ 30% AMI Selection Bedroom Size bedroom size) 5 BR 0 0 0.0000 4 BR 0 0 0.0000 3 BR 0 0 0.0000 2 BR 14 4 0.2857 1 BR 66 20 0.3030 SRO 0 0 0.0000 Total: 80 24 -

Lowest Income for 10% of Total Low-Income Units at 30% AMI Points: 2

Total Points for Lowest Income: 72

January 29, 2018 Version 38 Points System 3/1/2018 F. Readiness to Proceed

Points are available to applications documenting each of the categories below, up to a maximum of 10 points. Within the application the following must be delivered (see Regulation Section 10325(c)(7) and the Checklist Items for additional information): Readiness to Proceed Maximum 10 Points

Yes (i) Enforceable financing commitment, as defined in Section 10325(f)(3), for all construction 5 Points financing

Yes (ii) Evidence, as verified by the appropriate officials, that all environmental review clearances 5 Points (CEQA, NEPA, applicable tribal land environmental reviews) necessary to begin construction, except for clearances related to loans with must pay debt service for which the applicant is not seeking tiebreaker benefit (except the Tranche B calculation), are either finally approved or unnecessary

10 points will be available to projects that document all of the above and are able to begin construction within 180 days* of the Credit Reservation, as evidenced by submission of the following within 180 days of the Credit Reservation: ● a completed updated application form along with a detailed explanation of any changes from the initial application, ● an executed construction contract, ● a construction lender trade payment breakdown of approved construction costs, ● recorded deeds of trust for all construction financing (unless a project’s location on tribal trust land precludes this) ● binding commitments for permanent financing, ● binding commitments for any other financing required to complete project construction, ● a limited partnership agreement executed by the general partner and the investor providing the equity, ● payment of all construction lender fees, issuance of building permits (see Regulation Section 10325(c)(7) for additional guidance) ● notice to proceed delivered to the contractor.

If no construction lender is involved, evidence must be submitted within 180 days after the Credit Reservation is made that the equity partner has been admitted to the ownership entity and that an initial disbursement of funds has occurred. Failure to meet this timeline will result in rescission of the Tax Credit Reservation or negative points.

In addition to the above, all applicants receiving any points under this subsection must provide an executed Letter of Intent (LOI) from the project's equity partner within 90 days of the credit reservation. The LOI must include those features called for in the CTCAC application. The 90-day requirements apply to all projects requesting any points under this category. See Appendix for requirements.

In the event that one of the above criteria have NOT been met, 5 points may be awarded for the one that has been met. In such cases, the 180-day requirements will not apply to projects that do not obtain the maximum points in this category.

*After the Credit Reservation date TCAC will randomly assign a 180 day deadline for half of the awarded projects and a 194 day deadline for the remaining half of the projects.

Total Points for Readiness to Proceed: 10

January 29, 2018 Version 39 Points System 3/1/2018 G. Miscellaneous Federal and State Policies Maximum 2 Points

Yes (i) For applicants that agree that the Committee may exchange Federal Tax Credits for 2 Points State Tax Credits in an amount that will yield equal equity as if only Federal Tax Credits were awarded.

N/A (ii) Enhanced Accessibility and Visitability. Project design incorporates California Building Code 2 Points Chapter 11(B) and the principles of Universal Designed listed in Reg. Section 10325(c)(9)(B) in at least half of the project's units.

N/A (iii) Smoke Free Residence. The proposed project will have at least 1 nonsmoking building and 2 Points incorporate prohibition of smoking into the lease agreements for the affected units. If a single building project, the project will designate contiguous units as nonsmoking.

N/A (iv) Historic Preservation. The project proposes to incorporate historic tax credits. 1 Point

N/A (v) Revitalization Area Project. The project is located within a QCT, a census tract in which 2 Points at least 50% of the households have an income of less than 60% AMI, or a federal Promise Zone. The development will contribute to a concerted community revitalization plan as demonstrated by a letter from a local government official.

N/A (vi) Eventual Tenant Ownership. The project proposes to make tax credit units available for 1 Point eventual tenant ownership.

Total Points for Miscellaneous Federal and State Policies: 2

January 29, 2018 Version 40 Points System 3/1/2018 VI. POINTS SYSTEM - SECTION 2: POINTS SYSTEM SUMMARY

Total Possible Points: 113, Minimum Point Threshold: 96 Native American Apportionment: Total Possible Points: 98, Minimum Point Threshold: 83 APPLICANT MAXIMUM TOTAL POINTS POINTS POINTS A. General Partner & Management Company Experience 9 9 9 A(1) General Partner Experience 6 6 A(2) Management Company Experience 3 3 B. Housing Needs 10 10 10 C. Site & Service Amenities 25 25 25 C(1) Site Amenities 17 15 C(2) Service Amenities 10 10 D. Sustainable Building Methods 5 5 5 E. Lowest Income & 10% of Units Restricted @ 30% AMI 52.0 52.0 52.0 E(1) Lowest Income 70.0 50.0 E(2) 10% of Units Restricted @ 30% AMI 2 2 F. Readiness to Proceed 10 10 10 G. Miscellaneous Federal and State Policies 2 2 2 *Negative Points (if any, please enter amount:) NO MAX 0 Total Points: 113.0

*Negative points given to general partners, co-developers, management agents, consultants, or any member or agent of the Development Team may remain in effect for up to two calendar years, but in no event shall be in effect for less than one funding round. Furthermore, negative points may be assigned to one or more Development Team members, but do not necessarily apply to the entire Team. Negative points assigned by the Executive Director may be appealed to the Committee under appeal procedures enumerated in the regulations.

January 29, 2018 Version 41 Points System 3/1/2018 VII. TIE BREAKER SYSTEM - FINAL TIE BREAKER SELF-SCORE

This section is included in the application for self-scoring. Note that TCAC will use the tie-breaker self-scores to determine which projects will undergo further review in the competition, including verifying the self-scores for possible reservation of tax credits. TCAC will not evaluate or verify every project’s self-scoring. Projects with too low of a self- score to successfully compete for a reservation of tax credits will not undergo any further review by TCAC.

Provide evidence of committed permanent leveraged soft financing in Tab 20 and evidence of public rent or public operating subsidies in Tab 17.

Evidence of land value is required (see Tab 1). The value of the land must be included in "Total Residential Project Development Costs" below as evidenced in Tab 1. Donated land value must be included in Total Project Cost and the Sources and Uses Budget.

Seller carryback financing and any portion of a loan from a public seller or related party that is less than or equal to sale proceeds due the seller, except for a public land loan to a new construction project, must be excluded from Leveraged Soft Financing.

For projects with purchase price in excess of the appraised value, unless a waiver is granted, the purchase price in excess of the appraised value must be excluded from the Leveraged Soft Financing. Enter a positive number for the "Purchase Price Over Appraised Value" under the list of Leveraged Soft Financing below. Purchase Price Over Appraised Value will be automatically excluded from the Total Leveraged Soft Financing.

Ineligible off-site costs must be excluded from both numerators and denominators. Enter a positive number for the "Ineligible Offsites" under the list of Leveraged Soft Financing below. Ineligible Off-site costs will be automatically excluded from both the numerators and the denominators.

For projects with commercial/non-residential costs, the committed public funds will be discounted by the percentage of the commercial/non-residential portion.

Final Tie Breaker Formula:

Requested Unadjusted Eligible Basis + Committed Permanent Leveraged Soft Financing defraying Residential Costs Basis Reduction up to Leveraged Soft X Size Factor Financing excluding donated land, fee waivers, and capitalized value of rent differentials + (( 1 ) /3) Total Residential Project Development Costs Total Residential Project Development Costs

LEVERAGED SOFT FINANCING BASIS REDUCTION Capitalized Value of Rent Differentials of Public Rent/operating Subsidies $1,537,331 Total Basis Reduction $8,303,346 Total donated land value Total fee waivers List Leveraged Soft Financing excluding donated land and fee waivers: City of Vista residual receipts loan $5,700,000 County of San Diego residual receipts loan $2,700,000 AHP $800,000

Less: Excess Purchase Price Over Appraised Value $0 Less: Ineligible Offsites Total Leveraged Soft Financing excluding donated land and fee waivers $9,200,000 TOTAL $10,737,331

January 29, 2018 Version 44 Final Tie Breaker Self-Score 3/1/2018 MIXED USE PROJECTS For mixed-use projects, the permanent Leveraged Soft Financing numerator must be discounted/reduced by the Mixed-Use Ratio below. Mixed-Use Ratio = Total Commercial Cost / Total Project Cost: 0.0% The Prorated Commercial Cost Deduction To Leveraged Soft Financing Must Be Calculated Fist Before Applying Any Subsidy Adjustment/Increase To The Numerator. TCAC staff may adjust this ratio as deemed appropriate. Sample formula (commercial costs) for numerator Committed Permanent Leveraged Soft Financing defraying residential costs = G44*(1-J49)

SIZE FACTOR CALCULATION New Construction: Yes Tax Credit Units: 81 Size Factor: 1.16

FINALTIE BREAKER CALCULATION Leveraged Soft Financing less commercial proration $10,737,331 Requested Unadjusted Eligible Basis $13,752,939 Leveraged Soft Financing times Size Factor 12401616.89 Basis Reduction add-back $8,303,346

$12,401,617 $22,056,285 + 1 = 50.622% 29,207,660 (( $29,207,660 ) /3)

CAPITALIZED VALUE OF RENT DIFFERENTIALS ATTRIBUTABLE TO PUBLIC RENT OR PUBLIC OPERATING SUBSIDIES CALCULATION

Annual Rental Income Differential for Public Rent Subsidies: Annual Rental Income Differential for Public Operating Subsidies:

Rent Limit: If annual operating subsidy amount are similar in each year, enter: Use 30% AMI for Annual Operating Subsidy Amount in Year 1: Special Needs Projects OR OR Public Calculated If the contract does not specify an annual subsidy amount, enter: Use 40% AMI for Subsidy Annual Aggregate Subsidy Amount: Unit Type # of Units ALL OTHERS Contract Rent Rent Number of Years in the Subsidy Contract: 1 1 bedroom 20 $647 $1,260 $147,120 Average Annual Operating Subsidy Amount: $0 2 bedroom 4 $774 $1,635 $41,328 SRO $0 Annual Public Operating Subsidies: $0 SRO $0 SRO $0 SRO $0 Annual Rent Differential for Pulic Rent Subsidies: $188,448

Total Rent Differentials $188,448 Less Vacancy 5.0% Net Rental Income $179,026 Available for Debt Service @ 1.15 Debt Coverage Ratio: $155,674

Loan Term (years) 15 Interest Rate (annual) 6.0% Debt Coverage Ratio 1.15

Capitalized Value of Rent Differentials $1,537,331

January 29, 2018 Version 45 Final Tie Breaker Self-Score 3/1/2018 15 YEAR PROJECT CASH FLOW PROJECTIONS - Refer to TCAC Regulation Sections 10322(h)(22), 10325(f)(5), 10326(g)(4), 10327(f) and (g).

REVENUE MULTIPLIER YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 11 YEAR 12 YEAR 13 YEAR 14 YEAR 15 Gross Rent 1.025 $682,716 $699,784 $717,278 $735,210 $753,591 $772,430 $791,741 $811,535 $831,823 $852,619 $873,934 $895,783 $918,177 $941,132 $964,660 Less Vacancy 5.00% -34,136 -34,989 -35,864 -36,761 -37,680 -38,622 -39,587 -40,577 -41,591 -42,631 -43,697 -44,789 -45,909 -47,057 -48,233 Rental Subsidy 1.025 251,520 257,808 264,253 270,860 277,631 284,572 291,686 298,978 306,453 314,114 321,967 330,016 338,266 346,723 355,391 Less Vacancy 5.00% -12,576 -12,890 -13,213 -13,543 -13,882 -14,229 -14,584 -14,949 -15,323 -15,706 -16,098 -16,501 -16,913 -17,336 -17,770 Miscellaneous Income 1.025 4,860 4,982 5,106 5,234 5,365 5,499 5,636 5,777 5,921 6,069 6,221 6,377 6,536 6,700 6,867 Less Vacancy 5.00% -243 -249 -255 -262 -268 -275 -282 -289 -296 -303 -311 -319 -327 -335 -343 Total Revenue $892,141 $914,445 $937,306 $960,738 $984,757 $1,009,376 $1,034,610 $1,060,476 $1,086,987 $1,114,162 $1,142,016 $1,170,567 $1,199,831 $1,229,826 $1,260,572

EXPENSES Operating Expenses: 1.035 Administrative $19,301 $19,977 $20,676 $21,399 $22,148 $22,924 $23,726 $24,556 $25,416 $26,305 $27,226 $28,179 $29,165 $30,186 $31,242 Management 38,880 40,241 41,649 43,107 44,616 46,177 47,793 49,466 51,198 52,989 54,844 56,764 58,750 60,807 62,935 Utilities 110,923 114,805 118,823 122,982 127,287 131,742 136,353 141,125 146,064 151,177 156,468 161,944 167,612 173,479 179,550 Payroll & Payroll Taxes 132,096 136,719 141,505 146,457 151,583 156,889 162,380 168,063 173,945 180,033 186,334 192,856 199,606 206,592 213,823 Insurance 28,350 29,342 30,369 31,432 32,532 33,671 34,849 36,069 37,332 38,638 39,990 41,390 42,839 44,338 45,890 Maintenance 86,300 89,321 92,447 95,682 99,031 102,497 106,085 109,798 113,641 117,618 121,735 125,995 130,405 134,969 139,693 County Monitoring Fee/Misc Taxes 4,240 4,388 4,542 4,701 4,865 5,036 5,212 5,394 5,583 5,779 5,981 6,190 6,407 6,631 6,863 Total Operating Expenses $420,090 $434,793 $450,011 $465,761 $482,063 $498,935 $516,398 $534,472 $553,178 $572,540 $592,578 $613,319 $634,785 $657,002 $679,997

Transit Pass/Tenant Internet Expense* 1.035 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Service Amenities 1.035 11,580 11,985 12,405 12,839 13,288 13,753 14,235 14,733 15,249 15,782 16,335 16,906 17,498 18,111 18,744 Replacement Reserve 30,375 30,375 30,375 30,375 30,375 30,375 30,375 30,375 30,375 30,375 30,375 30,375 30,375 30,375 30,375 Real Estate Taxes 1.020 6,000 6,120 6,242 6,367 6,495 6,624 6,757 6,892 7,030 7,171 7,314 7,460 7,609 7,762 7,917 Other (Specify): 1.035 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Other (Specify): 1.035 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Total Expenses $468,045 $483,273 $499,033 $515,342 $532,221 $549,688 $567,765 $586,472 $605,832 $625,867 $646,602 $668,060 $690,267 $713,250 $737,034

Cash Flow Prior to Debt Service $424,096 $431,171 $438,273 $445,396 $452,536 $459,688 $466,846 $474,004 $481,156 $488,295 $495,414 $502,506 $509,563 $516,577 $523,538

MUST PAY DEBT SERVICE CCRC Permanent Loan Tranche A 160,997 160,997 160,997 160,997 160,997 160,997 160,997 160,997 160,997 160,997 160,997 160,997 160,997 160,997 160,997 CCRC Permanent Loan Tranche B 207,775 207,775 207,775 207,775 207,775 207,775 207,775 207,775 207,775 207,775 207,775 207,775 207,775 207,775 207,775 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Debt Service $368,772 $368,772 $368,772 $368,772 $368,772 $368,772 $368,772 $368,772 $368,772 $368,772 $368,772 $368,772 $368,772 $368,772 $368,772

Cash Flow After Debt Service $55,324 $62,399 $69,501 $76,624 $83,764 $90,916 $98,074 $105,232 $112,384 $119,523 $126,642 $133,734 $140,791 $147,805 $154,766

Percent of Gross Revenue 5.89% 6.48% 7.04% 7.58% 8.08% 8.56% 9.01% 9.43% 9.82% 10.19% 10.53% 10.85% 11.15% 11.42% 11.66% 25% Debt Service Test 15.00% 16.92% 18.85% 20.78% 22.71% 24.65% 26.59% 28.54% 30.48% 32.41% 34.34% 36.26% 38.18% 40.08% 41.97% Debt Coverage Ratio 1.150 1.169 1.188 1.208 1.227 1.247 1.266 1.285 1.305 1.324 1.343 1.363 1.382 1.401 1.420

OTHER FEES** GP Partnership Management Fee $17,500 $18,113 $18,746 $19,403 $20,082 $20,785 $21,512 $22,265 $23,044 $23,851 $24,685 $25,549 $26,444 $27,369 $28,327 LP Asset Management Fee 7,500 $7,763 $8,034 $8,315 $8,606 $8,908 $9,219 $9,542 $9,876 $10,222 $10,579 $10,950 $11,333 $11,730 $12,140 Incentive Management Fee

Total Other Fees 25,000 25,875 26,781 27,718 28,688 29,692 30,731 31,807 32,920 34,072 35,265 36,499 37,777 39,099 40,467

Remaining Cash Flow $30,324 $36,524 $42,720 $48,906 $55,076 $61,224 $67,342 $73,425 $79,463 $85,450 $91,377 $97,235 $103,015 $108,706 $114,299

Deferred Developer Fee**

Residual or Soft Debt Payments** City and County Residual Receipts $30,324 $36,524 $42,720 $48,906 $55,076 $61,224 $67,342 $73,425 $79,463 $85,450 $91,377 $97,235 $103,015 $108,706 $114,299

*9% and 4% + state credit applications shall include the cost of transit passes and tenant internet service if requested in the Points System site amenity section.

**Other Fees and all payments made from cash flow after must pay debt should be completed according to the terms of the partnership agreement (or equivalent ownership entity terms). Please re-order line items consistent with any "order of priority" terms. These items are to be completed when submitting an updated application for the Carryover, Readiness, Final Reservation, and Placed-in-Service deadlines.

January 29, 2018 Version 46 15 Year Pro Forma